Fitch Ratings - San Francisco - 15 Nov., 2023: Fitch Ratings has upgraded the following obligations of the Sonoma County Water Agency, CA (the agency or Sonoma Water) to 'AAA' from 'AA+':

--$19.5 million water revenue bonds, 2015 series A;
--Issuer Default Rating (IDR).

The Rating Outlook is Stable.

The upgrade to 'AAA' from 'AA+' of the water revenue bond rating and IDR reflect the agency's 'Exceptionally Strong' financial profile within the framework of 'Very Strong' revenue defensibility and 'Very Strong' operating risk profile, both assessed at 'aa'. The agency's leverage of negative 0.7x in fiscal 2022, measured as net adjusted debt-to-adjusted funds available for debt service (FADS), indicates cash and investments available for debt service being greater than net adjusted debt. Leverage is projected to peak at 4.1x in fiscal 2023 in Fitch's Analytical Stress Test (FAST) stress case before quickly declining to under 3.0x in fiscal 2025 and beyond, retaining comfortable headroom within the rating category. 

Read more at fitchratings.com.