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S&P Global today bumped the utility’s credit rating to AA- down from AA.
S&P Global downgraded Central Alabama Water's credit rating to AA- and put it on negative watch.
KEY POINTS
- The utility has only $23.8 million in reserves, enough for 62 days, far below required levels.
- The current board canceled infrastructure upgrades, including Lake Purdy Dam improvements cited in the credit downgrade.
- Central Alabama Water faces a $63 million September debt payment, risking further downgrades if not addressed.
- Refinancing the debt could increase annual costs by $3–4 million, likely impacting customer rates long-term.
COMPANIES
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