From the Orange County Newsroom and Staff Reports
In Summary:
S&P Global Ratings and Fitch Ratings awarded AAA ratings to Orange County’s Series 2026 Water and Wastewater Utility Revenue Bonds, citing the system’s exceptionally strong financial profile, according to a county release. The ratings followed extensive information requests and follow-up discussions with county officials and their advisers. Both agencies also reaffirmed AAA ratings on the water utility system’s existing outstanding debt.
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Orange County Utilities’ water and wastewater system earned the highest possible bond ratings from two major credit rating agencies for bonds issued in October 2026. S&P Global Ratings and Fitch Ratings each assigned AAA ratings to the system’s Series 2026 Water and Wastewater Utility Revenue Bonds.
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According to a county release, the ratings reflect the system’s exceptionally strong financial profile. Both agencies also affirmed their AAA ratings on the water utility system’s existing outstanding debt.
The ratings assess financial strength and creditworthiness associated with the system’s borrowing. They are financial evaluations, rather than measures of drinking water quality or wastewater treatment performance.
The review required the county to respond to extensive information requests from each agency and participate in follow-up ratings calls. The process brought together utility officials, other county offices and outside advisers.
“Our team is extremely proud to, once again, achieve these results,” said Marc Cannata, director of Orange County Utilities. “The support from the Board of County Commissioners and accomplishment by our fiscal experts is truly noteworthy – particularly in the current challenging economic climate.”
Participants included the Orange County Fiscal & Business Services Division, Orange County Comptroller’s Office and Orange County Attorney’s Office. Outside firms involved were PFM Financial Advisors, LLC; bond and disclosure counsel Nabors, Giblin & Nickerson; engineering firm Carollo; and rate consultant Stantec Consulting, Inc.
The ratings apply to a utility system serving a substantial portion of Orange County’s population. Orange County Utilities reports residential service populations of approximately 871,000 for water, 1.14 million for wastewater, and 421,000 for reclaimed water.
The department also provides solid waste services to a residential population of approximately 687,000. The announced bond ratings concern its water and wastewater system.
Key Points:
- S&P Global Ratings and Fitch Ratings awarded AAA ratings to the system’s bonds issued in October 2026.
- AAA is the highest rating assigned by either agency.
- Both firms also affirmed AAA ratings on existing outstanding debt.
- The review included extensive information requests and follow-up rating calls.
- County departments and outside financial, legal, engineering, and rate advisers contributed to the process.
