HARRISBURG, Pa., March 29, 2016 /PRNewswire-USNewswire/ -- Department of Community and Economic Development Secretary Dennis Davin today issued the following statement in response to the announcement that Standard & Poor's Rating Services, one of the world's leading credit benchmarking organizations, has assigned an 'A+' rating for Capital Region Water's Series 2016A and Taxable 2016B Water Revenue refunding Bonds:
"This news marks yet another positive step forward for the City of Harrisburg as it continues to move away from the fiscal instability and uncertainty of the past towards economic prosperity and stability for the future.
"For many years now, neither the city nor its agencies have had access to capital markets for infrastructure needs or to take advantage of continuing low interest rates and the accompanying debt service savings that can be derived from a refinancing. Due in part to the implementation of the Harrisburg Strong Plan, this announcement marks the first Harrisburg-related credit to restore its market access.
"The road to financial solvency and self-sufficiency often takes time, teamwork, and the ability to make tough decisions. While challenges still remain for the city, the collaboration and hard work by the recovery team, management of the authority and Harrisburg's leaders are beginning to build a stronger, more stable Capital City."
In 2013 the Harrisburg Strong Plan provided for the transfer of the city's water, sanitary sewer, and drainage services to The Harrisburg Authority, rebranded in 2014 as the Capital Region Water (CRW). Prior to 2013, the city operated the water system.
The Harrisburg Strong Plan was confirmed by Commonwealth Court in September 2013. Modifications to the Harrisburg Strong Plan are currently underway. Act 199 of 2014 among other provisions established an initial five year time period for a municipality to be in Act 47 after which an evaluation of their status is to occur. The modifications provide financial projections through 2018 the end of the initial five year period as well as recommendations intended to further advance the City's recovery.
See Standard & Poor's full report at: CRW Water Revenue Bonds
MEDIA CONTACT: Lyndsay Kensinger, 717-783-1132
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SOURCE Pennsylvania Department of Community & Economic Development