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Standard & Poor's Raises Ratings on JEA Water and Sewer Bonds
Jacksonville, FL (March 9, 2004) - Citing JEA's successful management of a large capital improvement plan and the successful integration of several private utility companies, Standard & Poor's (S&P) Ratings Services has raised its rating on the utility's water and sewer senior and subordinate bonds to "AA-" from "A+."
"This upgrade places JEA within a small, elite group of water and sewer systems nationwide," said JEA Board Chairman Jim England. "It's a terrific accomplishment and a testament to our strong management practices."
According to a statement from S&P, the upgrade reflects the rating agency's expectation that JEA management "will continue to successfully handle system growth while accommodating increased debt service costs associated with system expansion."
The upgrades on JEA senior and subordinate bonds affect about $1.4 billion of outstanding debt.
Improved bond ratings signal investors that S&P deems JEA bonds as a more secure investment with stronger creditworthiness. This means that when JEA goes to the financial market, its bonds have a larger pool of potential investors and that JEA should expect to save money on interest payments, which benefits JEA customers.
JEA serves 461,000 residential and commercial water and sewer accounts in the Jacksonville area.
JEA is the eighth largest community owned electric utility in America providing electricity, water and sewer services to more than 750,000 accounts in Northeast Florida.
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