San Diego, December 10, 2025
Fitch Ratings has reaffirmed the ‘AA+’ ratings for the San Diego County Water Authority (SDCWA), which includes $686.1 million in senior lien water revenue bonds. This affirmation highlights the authority’s financial stability and effective management amid ongoing economic challenges. The ratings outlook is stable, reflecting the critical role the SDCWA plays in supporting San Diego County’s infrastructure and economy.
San Diego, CA – Fitch Ratings Affirms ‘AA+’ Rating for San Diego County Water Authority
Fitch Ratings has affirmed the ‘AA+’ ratings for the San Diego County Water Authority (SDCWA), including $686.1 million in senior lien water revenue bonds and other related obligations. The Rating Outlook remains Stable.
This affirmation is a testament to the SDCWA’s commitment to financial stability, especially as the authority continues to manage its obligations effectively. With a role that is integral to San Diego’s infrastructure, this rating reflects the authority’s position as not only a key provider but also an archetype of diligent fiscal management, which plays a critical role in supporting the San Diego County economy.
Key Financial Metrics
- Leverage Ratio: The SDCWA’s net adjusted debt to adjusted funds available for debt service (FADS) was 7.1x in fiscal 2025, projected to peak at 7.9x in fiscal 2026 before declining over the next five years.
- Revenue Defensibility: The authority’s fundamental role as the regional water provider to nearly all of San Diego County supports its strong revenue defensibility.
- Operating Risk Profile: The SDCWA’s operating risk profile is assessed as very strong, reflecting its effective management and operational efficiency.
Considerations for Rating Stability
Maintaining the current ratings will depend on the SDCWA’s ability to manage operating costs and implement revenue adjustments effectively, particularly in the context of relatively flat sales volume. Additionally, potential future costs related to the Metropolitan Water District of Southern California’s (MWD) extensive long-term water supply projects may have implications for the authority’s financial standing, although the specifics remain uncertain.
Background on the San Diego County Water Authority
The SDCWA serves as the regional water provider for nearly all of San Diego County, delivering wholesale water supplies to 22 retail water providers, including cities, special districts, and a military base. With a history characterized by solid financial management, the authority has embarked on critical infrastructure projects aimed at enhancing water reliability throughout the region.
Key Features of the San Diego County Water Authority’s Financial Standing
| Feature | Details |
|---|---|
| Rating Affirmation | Fitch Ratings has affirmed the ‘AA+’ ratings for the San Diego County Water Authority (SDCWA), including $686.1 million in senior lien water revenue bonds and other related obligations. The Rating Outlook remains Stable. |
| Leverage Ratio | The SDCWA’s net adjusted debt to adjusted funds available for debt service (FADS) was 7.1x in fiscal 2025, projected to peak at 7.9x in fiscal 2026 before declining over the next five years. |
| Revenue Defensibility | The authority’s fundamental role as the regional water provider to nearly all of San Diego County supports its strong revenue defensibility. |
| Operating Risk Profile | The SDCWA’s operating risk profile is assessed as very strong, reflecting its effective management and operational efficiency. |
| Considerations for Rating Stability | Maintaining the current ratings will depend on the SDCWA’s ability to manage operating costs and implement revenue adjustments effectively, especially in the context of relatively flat sales volume. Additionally, potential future costs associated with the Metropolitan Water District of Southern California’s (MWD) large long-term water supply projects may impact the authority’s financial position, though specific details remain uncertain. |
| Background on the SDCWA | The SDCWA serves as the regional water provider for nearly all of San Diego County, delivering wholesale water supplies to 22 retail water providers, including cities, special districts, and a military base. The authority has a history of strong financial management and has undertaken significant infrastructure projects to enhance water reliability in the region. |
Frequently Asked Questions (FAQ)
What is the current rating of the San Diego County Water Authority?
Fitch Ratings has affirmed the ‘AA+’ ratings for the San Diego County Water Authority (SDCWA), including $686.1 million in senior lien water revenue bonds and other related obligations. The Rating Outlook remains Stable.
What are the key financial metrics for the SDCWA?
The SDCWA’s net adjusted debt to adjusted funds available for debt service (FADS) was 7.1x in fiscal 2025, projected to peak at 7.9x in fiscal 2026 before declining over the next five years. The authority’s fundamental role as the regional water provider to nearly all of San Diego County supports its strong revenue defensibility. The SDCWA’s operating risk profile is assessed as very strong, reflecting its effective management and operational efficiency.
What factors could affect the SDCWA’s ratings in the future?
Maintaining the current ratings will depend on the SDCWA’s ability to manage operating costs and implement revenue adjustments effectively, especially in the context of relatively flat sales volume. Additionally, potential future costs associated with the Metropolitan Water District of Southern California’s (MWD) large long-term water supply projects may impact the authority’s financial position, though specific details remain uncertain.
What is the role of the San Diego County Water Authority?
The SDCWA serves as the regional water provider for nearly all of San Diego County, delivering wholesale water supplies to 22 retail water providers, including cities, special districts, and a military base. The authority has a history of strong financial management and has undertaken significant infrastructure projects to enhance water reliability in the region.
Deeper Dive: News & Info About This Topic
HERE Resources
Anaergia Technologies Wins Renewable Power Contract in Carlsbad
Anaergia Technologies Secures Major Contract for Renewable Energy Facility
San Diego Considers Direct Potable Reuse for Water Project
San Diego Water Authority Projects Significant Rate Increases Amid Infrastructure Challenges
San Diego County Implements New Labor Standards for Event Workers
San Diego Water Rate Increases Spark Public Outcry
San Diego City Council Delays Water Rate Increase Decision
San Diego Faces Historic Drought Challenges
San Diego Residents Brace for Utility Rate Increases
Lake Hodges Safety Concerns Rise in Rancho Santa Fe
Author: STAFF HERE SAN DIEGO WRITER
The SAN DIEGO STAFF WRITER represents the experienced team at HERESanDiego.com, your go-to source for actionable local news and information in San Diego, San Diego County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Comic-Con International, San Diego County Fair, and San Diego Pride Festival. Our coverage extends to key organizations like the San Diego Regional Chamber of Commerce and United Way of San Diego County, plus leading businesses in biotechnology, healthcare, and technology that power the local economy such as Qualcomm, Illumina, and Scripps Health. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECostaMesa.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HEREMissionViejo.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.
