In the face of persistent economic pressures and rising infrastructure costs, the Suffolk County Water Authority has sustained its AAA bond rating.
It’s the highest given by Fitch Ratings, the global agency that analyzes the credit worthiness of government entities.
“Maintaining this AAA rating demonstrates our commitment to fiscal responsibility and long-term planning,” said SCWA Chairman Charlie Lefkowitz. “Fitch’s decision reinforces that we are managing our resources wisely, which helps us keep costs down for our customers while investing in the infrastructure needed to deliver high-quality water.”
The highest possible rating reflects the authority’s strong financial management, operational efficiency and commitment to infrastructure investment without increasing long-term debt, Lefkowitz noted.
“This designation ensures SCWA would receive the most favorable interest rates if entering the bond market to fund critical infrastructure projects.”
The water authority has historically used bond offerings to support significant projects such as the installation of new pipelines, the development of additional supply wells and the implementation of advanced water treatment technologies to meet evolving regulatory standards.
However, SCWA has adopted a pay-as-you-go approach to infrastructure investment, meaning that it has not taken on any new long-term debt since 2020, a strategy that Fitch noted in its decision, agency officials pointed out.
“Our financial strategy remains focused on delivering reliable, high-quality water to Suffolk County residents while keeping rates affordable,” said SCWA CEO Jeff Szabo. “This decision is a reflection of the hard work and dedication of our entire team, whose efforts ensure we remain a strong and resilient organization.”
Fitch Ratings cited SCWA’s strong financial management policies, high liquidity and proactive infrastructure investments as key factors in keeping the AAA rating intact.
“This speaks to the diligent financial oversight we’ve exercised over the past several years,” said Chief Financial Officer Christopher Cecchetto. “Our conservative approach to budgeting and strategic investments has positioned us well, even in challenging economic conditions. The AAA rating will allow us to secure the best possible financing terms if borrowing becomes necessary in the future.”
He added that the authority continues to maintain its strong financial position while offering some of the most affordable water rates in New York State.
The Suffolk County Water Authority is an independent public-benefit corporation operating under the authority of the Public Authorities Law of the State of New York. Serving approximately 1.2 million Suffolk County residents, it operates without taxing power on a not-for-profit basis.