Standard and Poor's and Fitch Ratings Reaffirm â€œAAAâ€ Rating for SWIRFT 2017 Bonds
AUSTIN, TX Standard and Poor's (S&P) and Fitch Ratings have both reaffirmed "AAA" ratings for the Texas Water Development Board's (TWDB) upcoming bond issuance from the State Water Implementation Revenue Fund for Texas (SWIRFT). "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.
"SWIRFT's "˜AAA' ratings once again demonstrate the solid fiscal management and stability of the Texas economy," said Texas Comptroller Glenn Hegar. "High ratings are critical for saving the state and taxpayers money when it comes to developing water infrastructure."
The TWDB will issue SWIRFT bonds to the market in September to fund approximately $1.2 billion in SWIRFT projects. The proceeds of the bond sale will be used to provide financial assistance for state water plan projects the TWDB previously approved. This year's bond issuance will be the third from SWIRFT and the largest to date.
"The first two cycles of SWIRFT saved project sponsors more than $177 million," said TWDB Board Chairman Bech Bruun. "The third bond sale next month will bring additional savings to Texas communities and allow for the implementation of vital state water plan projects."
Because the TWDB is offering multi-year funding through the SWIRFT, the agency has already committed $5.6 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 over the next 50 years to finance approximately $27 billion in water supply projects.