The El Dorado Irrigation District announced that S&P Global Ratings (S&P) has assigned a strong 'AA-' long-term credit rating to the District's anticipated $43.8 million Series 2026A Revenue Refunding Bonds. The rating update was presented during today's Board meeting. S&P also affirmed its 'AA-' rating on the District's existing revenue debt and its 'A+' rating on the District's Series 2022 taxable pension obligation bonds. The outlook on all ratings is Stable.

This high investment-grade rating is an independent confirmation of the District's sound financial health, responsible management, and long-term planning. The Series 2026A bonds will refinance existing debt, helping reduce borrowing costs and further strengthen the District's overall stability. Together, these actions reinforce the District's solid financial foundation and long-term outlook.

For customers, maintaining a strong credit rating helps keep financing costs low, which supports stable and affordable rates over time. It also demonstrates the District's commitment to careful financial stewardship and the reliable delivery of water and wastewater services to the community. Strong financial planning allows the District to continue investing in essential infrastructure while keeping services dependable and sustainable.

In its report, S&P highlighted the District's stable customer base, affordable service rates, and low delinquency levels. The agency also recognized the District's established rate plan, strong liquidity, and prudent financial practices. The District does not plan to issue additional debt until at least 2028, further supporting its stable financial outlook. S&P also noted the District's strong and reliable water supply, supported by long-standing water rights, which help ensure the District can meet current and future customer demand.

As a California water provider, EID operates in a region that experiences drought, wildfire risk, flooding, and seismic activity. The District actively manages these risks through vegetation management in key watershed areas, infrastructure improvements, regular system maintenance, and property insurance coverage of up to $500 million per occurrence. EID does not transmit or distribute electricity and does not own overhead powerlines, which reduces wildfire liability exposure compared to electric utilities.

While prolonged drought conditions or unexpected financial pressures could affect future performance, S&P expects the District to maintain financial measures consistent with its current rating. Continued stable financial reserves and successful completion of planned capital improvements could further strengthen EID's credit profile.

The full S&P Global Ratings press release is available at: https://www.spglobal.com/ratings/en/regulatory/article/-/view/sourceId/101670645.

EID remains committed to delivering safe and reliable water, wastewater, recycled water, hydropower, and recreation services while maintaining responsible financial stewardship for the benefit of its customers and the community.

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EID is a public agency dedicated to providing high quality water, wastewater treatment, recycled water, hydropower, and recreation services in an environmentally and fiscally responsible manner.