Hilton Head Public Service District (PSD) has received a very favorable credit rating from S&P Global Ratings. S&P assigned its ‘AA+’ issuer credit rating to the PSD, with a stable outlook. The rating reflects the utility’s ample system capacity to handle current customer needs as well as near-to-moderate term growth, its ongoing long-term water supply planning, strong finances, manageable debt burden, and its long-term financial and capital plans, according to S&P.
“The (PSD) has strong management,” wrote S&P in issuing the rating. “From an infrastructure standpoint, management recognizes that replacement and upgrading of aging infrastructure is a critical goal, and they have a capital plan in place to meet infrastructure needs.”
While S&P noted “healthy growth in a tourism-based service area” as a factor in the rating, it also acknowledged that the PSD’s service area faces the threat of hurricanes and other risks related to “outsized climate change exposure.” The PSD’s involvement in ongoing and comprehensive emergency response planning alongside state, county, and municipal partners was highlighted by S&P.
“We are very pleased to have earned the ‘AA+’ rating,” said PSD General Manager Pete Nardi. “The utility’s strength reflects the support of our customers and Board of Commissioners, our excellent and dedicated team, and our community partners. We believe the PSD’s services are foundational to our quality of life and our daily work is to maintain and enhance those services.”