Fitch Ratings, which rates bonds, has assigned a rating of AA- to Westlands Water District (WWD). Some interesting comments (with emphasis added) from the Fitch analysis:
“WWD’s future capital needs continue to be focused on obtaining additional water entitlements and to firm up delivery of existing entitlements. Capital improvements in the district have averaged just over $2 million a year for the last four years. However, additional water supply projects could result in more debt financing by the district.”
Also, regarding the Bay Delta Conservation Plan (BDCP), “The cost of the DHCCP project is currently uncertain, with latest estimates being over $14 billion. Moreover, the ultimate source of funding for such a massive undertaking remains to be determined. Further leverage on the WWD and SLDMWA [San Luis Delta Mendota Water Authority] could apply downward pressure to the ratings.”