Fitch revises GWA outlook from ‘negative’ to ‘stable’; affirms bond rating at 'BBB'

Fitch Ratings affirmed two Guam Waterworks Authority obligations totaling more than $1.3 billion at 'BBB'.

According to Fitch, a BBB rating is considered good credit quality and indicates that expectations of default risk are low and the “capacity for payment of financial commitments is considered adequate, but adverse business or economic conditions are more likely to impair this capacity.

The two bonds are:
• Water and wastewater system revenue bonds series 2016 — $81 million
• Water and wastewater system revenue refunding bonds series 2017 — $55.2 million

The construction of the 2 million-gallon Manenggon Concrete Tank construction on April 29. Photo courtesy Guam Waterworks Authority

Fitch also affirmed GWA's Issuer Default Rating at 'BBB'. An issuer default rating opines on an entity's relative vulnerability to default on financial obligations.

Fitch also revised the rating outlook from negative to stable, which means GWA’s financial situation and credit profile are not expected to undergo significant changes that would warrant an adjustment to the rating. This provides reassurance about the GWA’s ability to meet its financial obligations.

GWA was previously assessed with a negative outlook, which generally indicates a higher probability of a downgrade in ratings. A positive outlook suggests a higher probability of a rating upgrade. Fitch Ratings assigns credit ratings to companies, governments, and other entities to assess their creditworthiness and the likelihood of them defaulting on their financial obligations.

Construction of the Manenggon Reservoir. Photo courtesy Guam Waterworks Authority.

In 2024, Moody’s Investor Service upgraded the government of Guam's issuer rating along with other bonds. GovGuam’s issuer rating, general obligation bonds, Hotel Occupancy Tax bonds, and Business Privilege Tax bonds were assessed at investment grade Baa3 from Ba1. Moody's also upgraded Guam's Certificates of Participation rating to Ba1 from Ba2. See GovGuam bond rating upgrade supported by military construction, tourism. mbj

Beautification Task Force update on stray animals, Hagåtña pool, and abandoned vehicles

Since 2022, about 14,300 stray animals have been rounded up throughout the island. Of those, only 1,745 were adopted and more than 12,200 were euthanized, according to Lt. Gov. Joshua F. Tenorio. Stray animals and next week’s groundbreaking ceremony for the construction of the Hagåtña pool were among the issues discussed at the Islandwide Beautification Task Force.

Fitch revises GWA outlook from ‘negative’ to ‘stable’; affirms bond rating at 'BBB'