Standard and Poor’s and Fitch Ratings assign AAA rating for SWIRFT 2018 bonds
For immediate release. Contact: Kimberly Leggett at 512-463-5129
AUSTIN – (August 21, 2018) – S & P Global Ratings and Fitch Ratings have both assigned a “AAA” rating to the Texas Water Development Board’s (TWDB) upcoming Series 2018B and 2018C State Water Implementation Revenue Fund for Texas (SWIRFT) revenue bond issuance, with a stable outlook. Additionally, both have affirmed their “AAA” ratings to the outstanding SWIRFT revenue bonds. “AAA” is the highest assigned rating, resulting in a lower cost of funds that will allow the TWDB to continue to pass on cost savings to its customers.
“Since its first bond issuance in 2015, the SWIRFT program has continued to secure the highest credit ratings available,” said Texas Comptroller Glenn Hegar. “The sound fiscal management of the program allows the state to continue passing along important savings to Texas communities for necessary water infrastructure projects.”
The TWDB will price SWIRFT bonds in September to fund approximately $1.9 billion for SWIRFT projects. The proceeds of the bond sale will be used to finance previously approved state water plan projects. The SWIRFT bond issuance will be the largest to date.
“The size of the issuance is a testament to the interest the SWIRFT program generates among Texas communities,” said TWDB Chairman Peter Lake. “As the tremendous success of the program demonstrates, Texas is planning and building to meet the long-term water needs of the future.”
Because the TWDB is allowing multi-year funding through SWIRFT, the agency has now committed approximately $8.2 billion for state water plan projects in Texas.
SWIRFT was established along with the State Water Implementation Fund for Texas (SWIFT) by the Texas Legislature and voters in 2013 to fund projects in the state water plan. SWIFT was created through the transfer of a one-time, $2 billion appropriation from the state’s Rainy Day Fund. The $2 billion will be leveraged with revenue bonds to finance approximately $27 billion in water supply projects over the next 50 years. Please visit the SWIFT program* web page for more information.
The TWDB will open the application process for the next cycle of SWIRFT later this year.
*The SWIFT program includes two funds, the State Water Implementation Fund for Texas (SWIFT) and the State Water Implementation Revenue Fund for Texas (SWIRFT). Revenue bonds for the program are issued through SWIRFT.
The TWDB is the state agency charged with collecting and disseminating water-related data, assisting with regional planning, and preparing the state water plan for the development of the state’s water resources. The TWDB administers cost-effective financial assistance programs for the construction of water supply, wastewater treatment, flood control, and agricultural water conservation projects.