Metropolitan Water District (Photo – watereducation.org)
The Metropolitan Water District of Southern California has secured top-tier credit ratings from the nation’s leading agencies, which cited the district’s strong fiscal management and forward-looking climate adaptation efforts as key factors.
By News Desk
Standard & Poor’s reaffirmed its highest AAA/stable rating, while Moody’s maintained an Aa1/stable rating for Metropolitan’s recent sale of $132 million in Series 2025A senior lien water revenue refunding bonds. Additionally, Fitch and S&P each assigned AA+/stable ratings to a proposed $173 million subordinate lien bond issuance. Proceeds from the issuance will support the High Desert Water Bank Program, a collaborative initiative with the Antelope Valley-East Kern Water Agency.
“It’s gratifying to see Metropolitan receive high credit ratings, amid difficult choices about our water and financial future,” said Metropolitan board Chair Adán Ortega, Jr. “We will continue to be fiscally responsible as we adapt our water supply to the challenges brought by climate change. Having excellent credit ratings will help reduce the cost of essential investments.”
The High Desert Water Bank Program is a critical infrastructure project aimed at enhancing Southern California’s water resilience. It is one of several long-term investments Metropolitan is pursuing to address an increasingly volatile climate marked by drought, wildfires, and other extreme events.
Rating agencies praised the district’s recent financial and operational reforms, noting that changes to its budget structure and business model have strengthened long-term stability. S&P specifically highlighted Metropolitan’s robust emergency preparedness and advanced scenario modeling in its Climate Adaptation Master Plan for Water (CAMP4Water) as effective tools to mitigate climate-related risks.
“Metropolitan is prioritizing planning and climate adaptation processes, knowing that climate change will affect our water supplies, infrastructure, operations and financial sustainability,” said John Bednarski, assistant general manager of water resources and technical services. “The CAMP4Water planning process will allow us to manage risk and make better decisions for our customers and our investors.”
Metropolitan provides water services to 19 million people across Southern California.
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