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KBRA Affirms AA+ Rating for the San Mateo-Foster City Public Financing Authority, Estero Municipal Improvement District Wastewater Enterprise 2020 EPA WIFIA Loan

3 Sep 2025   |   New York

Contacts

KBRA affirms the long-term rating of AA+ for the San Mateo-Foster City Public Financing Authority, Estero Municipal Improvement District (the District) Wastewater Enterprise 2020 EPA WIFIA Loan (San Mateo Wastewater Treatment Plant (WWTP) Upgrade and Expansion Project). The Outlook is Stable.

Key Credit Considerations

The rating was affirmed because of the following key credit considerations:

Credit Positives

  • Excellent liquidity position.
  • District has consistently enacted rate increases and has historically managed its capital program on a pay-go basis.
  • Affluent service area with a primarily residential customer base.

Credit Challenges

  • Revenue growth may need to be supported by the continuation of rate increases.
  • Recently increased debt burden as a result of the WWTP upgrade.

Rating Sensitivities

  • Rating upgrade is unlikely given the relatively small size of the customer base.
  • While unlikely, reduction in Wastewater Enterprise revenues causing a sustained decline in debt service coverage or liquidity position.

To access ratings and relevant documents, click here.

Methodologies

Disclosures

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

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