Moody's rates water district high positive on back of Huntingdon proposal
Credit rating agency, Moody's Investors Service, has given a positive credit appraisal to the Orange County Water District's (OCDW's) approval of a non-binding arrangement to buy 70,000 Ml of water from Poseidon Water's proposed Huntington Beach desalination plant in California.Moody's said that the proposed deal with Poseidon would meet about 13% of the OCWD's current total water deliveries and 11% of projected water demand in 2035.
"The availability of additional water supply - from any source - is credit positive for OCWD," said Moody's. It rated the water district Aa1 with a stable outlook.
Under the deal, Poseidon would obtain permits, finance the project, and build and operate the plant while the district would be responsible for building adjacent capital infrastructure such as pipelines. OCWD has estimated its costs in the area of US$140 million, which Moody's described as "manageable, given the district's operating budget and current liquidity position."