Aquarion Water Authority to Issue $2.4B in Bonds for Water Utility Acquisition
Aquarion Water Authority plans to issue $2.4 billion in bonds to acquire Aquarion Water Co. from Eversource Energy. S&P Global Ratings indicates that future rate increases will be crucial for maintaining investment-grade status.
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Aquarion Water Authority is set to issue nearly $2.4 billion in bonds, encompassing approximately $1.83 billion in senior-lien bonds rated 'A-' and $547 million in subordinate-lien bonds rated 'BBB+'. Approval for the acquisition of Aquarion Water Co. from Eversource Energy was confirmed by PURA after initial rejection, with the final legal challenges resolved.
S&P Global Ratings emphasized that projected rate increases will be necessary for sustaining the ratings and highlighted AWA's ability to set rates independently as a credit strength. This bond issuance represents one of the largest infrastructure offerings in Connecticut's history, impacting 688,000 customers across 60 municipalities.
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