Sanitation District No. 1 (SD1) of Northern Kentucky has received an upgraded outlook from Moody’s Investors Service, which revised SD1’s credit rating outlook from “stable” to “positive” while affirming its strong Aa2 rating on the district’s revenue bonds.
The revision reflects SD1’s continued financial strength, prudent management of its capital improvement projects and steady progress on its Clean H2O40 sewer overflow mitigation program.
In its announcement earlier this week, Moody’s cited SD1’s “ample liquidity” and strong financial position as key factors in the outlook upgrade. The agency also recognized SD1’s proactive approach to meeting its Clean H2O40 goals, with major projects completed well ahead of schedule, and its ability to maintain robust debt service coverage.
“This upgraded outlook is a testament to the strong financial stewardship and long-term planning at SD1,” said SD1 Executive Director Adam Chaney. “It reflects our commitment to responsibly managing resources while investing in critical infrastructure that protects public health, property and the environment.”
The upgrade comes during a streak of 11 consecutive years of the Government Finance Officers Association (GFOA) awarding SD1 its Certificate of Achievement for Excellence in Financial Reporting. The award recognizes organizations who have demonstrated a “constructive spirit of full disclosure” to clearly communicate its financial story. SD1 anticipates it will receive a twelfth straight GFOA award this summer.
The Moody’s report also highlighted SD1’s growing service area and its proximity to Cincinnati and the Cincinnati/Northern Kentucky International Airport as economic strengths. While SD1 will continue to make significant capital investments, totaling $1.9 billion, over the next two decades – about half of which are related to Clean H2O40 – Moody’s noted that the District’s ability to maintain financial stability, including its history of outperforming financial projections, positions it well for future success.
“Earning a positive outlook from Moody’s and the GFOA Certificate of Achievement reinforces the financial strategies we have put in place,” said Ron Schmitt, SD1 director of finance. “It is a recognition of our ongoing efforts to balance affordability for our customers with the need to make critical infrastructure improvements, all while maintaining public trust through exemplary financial transparency.”
Sanitation District No. 1