Zone 7 Receives Highest Bond Rating from Fitch

Fitch Ratings Upgrades Zone 7’s Bond Rating to ‘AAA’ – the highest bond rating from Fitch

Zone 7 Water Agency (Zone 7) has received the highest possible financial rating – ‘AAA’ from Fitch Ratings, one of the country’s top rating agencies. This follows Zone 7 receiving Standard & Poor’s (S&P) Global Ratings’ highest rating of ‘AAA’ in 2023. These top ratings establish Zone 7 as one of the most financially resilient and well-managed water agencies in the state. In California, Zone 7 is one of only 12 water agencies to earn Fitch’s ‘AAA’ rating.

Zone 7 General Manager Valerie Pryor commented, “This upgrade reflects the Board’s leadership and our staff’s commitment to strong financial practices and maintaining a resilient water supply portfolio.”

In its report detailing the reasons for the upgrade to ‘AAA,’ Fitch specifically noted Zone 7’s “exceptionally low leverage and strong operating risk profiles,” and stated that the Agency is well-positioned to absorb potential increases in leverage if financing becomes necessary for large capital projects in the future.

“We are extremely proud of receiving Fitch’s highest rating,” said Board President Kathy Narum. “Paired with the S&P ‘AAA’ rating, this demonstrates the Agency’s commitment to operating in a transparent, cost-effective, and efficient manner. These positive rating actions allow Zone 7 to borrow funds at lower interest rates, making it possible to finance important infrastructure projects more affordably.”

About Zone 7 Water

Zone 7 Water Agency is one of the 10 active zones of the Alameda County Flood Control and Water Conservation District. Established by the State Legislature in October 1949, the District was created to address flooding, drainage, channel erosion and water supply and conservation in Alameda County. In 1957, by popular vote, Zone 7 became a special district governed by a seven-member elected board of directors.

Along with flood protection, Zone 7 supplies water to all of eastern Alameda County, serving more than a quarter million residents. Treated water is sold wholesale to local retailers, including the cities of Livermore and Pleasanton, the Dublin San Ramon Services District, and California Water Service Company. Zone 7 also provides untreated water to local agriculture operations and golf courses.