Bond agencies have begun assigning ratings to the $41.3-million in bonds Hernando County will issue to pay for its October purchase of Florida Water Services' Spring Hill utility.
Both Fitch Ratings and Moody's have assigned versions of an A rating to the bonds. County officials say Standard & Poor's is expected to issue a similar rating soon.
The ratings are considered excellent and signal to investors that the bonds are a safe purchase. In assigning the A ratings, the agencies praised the sound financial operations of the system and the likelihood of future growth in Spring Hill.
Utility ratepayers will repay the debt over three decades. The bonds are expected to be priced next week. At that time, the exact amount of the debt, including the interest attached to the bonds, will be known. The interest has been estimated at $40-million.
