Moody's raises Two Rivers Water Reclamation Rev bond rating to Aa3

Moody's raises Two Rivers Water Reclamation Rev bond rating to Aa3

Moody’s Upgrades Two Rivers Water Reclamation Revenue Bond Rating to Aa3
February 27, 2026

Moody’s Investors Service has raised its credit rating for the Two Rivers Water Reclamation Authority (TRWRA) revenue bonds to Aa3, reflecting improved financial stability and operational performance. The upgrade indicates a reduced risk profile for the bonds, which fund infrastructure and operations for the water reclamation agency in California’s Central Valley.

The rating action follows a review of TRWRA’s fiscal 2022–2023 audit, which demonstrated consistent revenue generation, prudent debt management, and adequate reserves to meet obligations. The audit highlighted the agency’s ability to maintain user fees and federal funding streams, as well as its compliance with environmental and regulatory standards according to the fiscal 2023 audit. Moody’s cited these factors as evidence of TRWRA’s capacity to withstand economic pressures and sustain service levels.

The Aa3 rating places the bonds in the “high-grade” category, just one notch below the highest investment-grade rating (Aa1). This upgrade may enhance TRWRA’s access to capital markets at favorable interest rates, benefiting ratepayers and bondholders. Moody’s also noted the agency’s alignment with broader infrastructure resilience goals, though it emphasized that the rating reflects specific project-level performance rather than general obligation support.

Investors are advised that the rating does not constitute a recommendation to buy, sell, or hold the bonds. The upgrade underscores TRWRA’s creditworthiness but does not account for broader macroeconomic risks, such as interest rate fluctuations or regional water demand shifts.

For further details, refer to Moody’s ratings methodology and TRWRA’s fiscal 2022–2023 audit.

This article is based on publicly available information and is intended for informational purposes only.