WSSC Water Earns AAA Bond Rating for 25th Straight Year in $379.4 Million Bond Sale

Laurel, Md. – February 5, 2026 – WSSC Water has once again earned a AAA bond rating from all three financial rating agencies – the highest possible credit rating – for the 25th consecutive year as part of today’s $379.4 million bond sale. The offering includes $28.5 million in green bonds that will support environmentally beneficial water and wastewater infrastructure projects. Fitch Ratings, Standard & Poor’s Global Ratings (S&P) and Moody’s Ratings also noted the rating outlook continues to be stable. 

“This milestone is the result of disciplined governance and a strong outcome-based budgeting framework,” said WSSC Water Commission Chair Mark J. Smith. “We have remained focused on key financial metrics, long-term affordability and transparent decision making. These factors give the rating agencies – and our customers – confidence that we are managing our resources responsibly while investing for the future.” 

In S&P’s ratings overview, the firm noted: “[WSSC Water’s] credit quality is anchored by the extremely strong management team that has historically demonstrated an ability and willingness to reduce expenditures and increase rates to maintain sufficient coverage and liquidity.…” 

In Fitch Ratings’ credit summary, they stated: “The 'AAA' ratings consider [WSSC Water's] 'Very Strong' financial profile, in the context of its 'Very Strong' Revenue Defensibility and 'Very Strong' Operating Risk profiles....” 

Moody’s Ratings noted: “We anticipate that the system’s financial position will remain steady given solid annual revenue growth and ongoing expenditure control.” 

“This AAA rating directly benefits our customers,” said WSSC Water General Manager and CEO Kishia L. Powell. “We are in the midst of an ambitious capital improvement program - replacing aging infrastructure, strengthening system reliability and resilience. Maintaining the highest credit rating allows us to borrow at lower interest rates, which reduces financing costs and helps keep rates more affordable for the communities we serve. It’s a clear validation of our financial discipline and long-range planning.” 

WSSC Water received five bids for its bonds offered with Morgan Stanley & Co., LLC, the winning bid. The bonds will be repaid over 30 years and locked in a final borrowing cost of 4.08 percent. The bonds are scheduled to close on February 19, 2026. 

Proceeds from the general obligation bonds will fund key capital projects, including: 

• $79.5 million to replace 27 miles of water pipe in the Water Reconstruction Program
• $54.6 million to replace 6 miles of large diameter water pipe in the Large Diameter Water Pipe & Large Valve Rehabilitation Program
• $51.6 million to replace 25 miles of sewer pipe in the Sewer Reconstruction Program
• $41.9 million to replace 10 miles of trunk sewer line in the Trunk Sewer Reconstruction Program
• $35.0 million in Master Planning and Facilities Planning and Investments
• $33.6 million in Lead and Copper Reduction regulatory compliance 

Proceeds from the sale of $28.5 million in green bonds will fund the following upgrades:  

• Potomac Water Filtration Plant: $20 million 
• Large-diameter water distribution system: $8.5 million 

WSSC Water’s Green Financing Framework was assigned a Sustainability Quality Score 2 (very good) from Moody’s Ratings. The Framework establishes WSSC Water’s process for financing projects across eligible green categories. The framework is aligned with the four core components of the International Capital Market Association's (ICMA) Green Bond Principles. 

To learn more about WSSC Water’s financial information, visit https://www.wsscwater.com/fin.