Moody’s downgrades water utility’s credit rating, citing weakening finances, debt

Moody’s Ratings has downgraded Aquarion Water Co.’s credit rating one notch, placing it into a higher-risk category. In late May, Moody’s lowered the water utility’s credit rating from A3 to Baa1, noting its low overall business risk, with a weakening financial profile. The credit rating agency said that Aquarion’s rating change reflected increased risk from “adverse regulatory or political decisions,” following the Public Utilities Regulatory Authority’s decision to reduce Aquarion’s revenue and lower its return on equity last year. Bridgeport-based Aquarion and other Connecticut utilities have said PURA’s crackdown on rate increases threatens their ability to attract capital and will ultimately lead to increased costs for consumers.

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