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OWDA Drinking Water Assistance Fund Bonds

Issuer Type: Water/Sewer

Revenue

Moody's
Aaa
S&P
AAA

On behalf of the Ohio Water Development Authority (OWDA), I would like to welcome you to our new investor relations website. We appreciate your interest and investment in bonds issued by the OWDA, as it allows us to make critical investments in environmental infrastructure. The OWDA administers numerous bond funded programs, most of which are stand-alone programs and not cross-collateralized with each other. We are committed to maintaining our strong bond ratings, and we are also committed to being as transparent as possible with the investor community and public at large.

I hope you find this website useful as you seek to better understand the credit fundamentals of the OWDA. Please do not hesitate to contact our office with suggestions for how we can do better. Thanks again for your interest in our bond program.

Ken J. Heigel, P.E., Executive Director

News & Highlights

November 4, 2019

Press Release
Moody's assigns Aaa to Ohio Water Dev. Auth. Drinking Water Assistance Fund Ref. Rev. Series 2019B; outlook stable

Moody's Investors Service has assigned a Aaa rating to the proposed $44.53 million of Ohio Water Development Authority (OWDA), Drinking Water Assistance Fund (DWAF) Refunding Revenue Bonds, Series 2019B (Bonds). Moody's also maintains a Aaa rating on outstanding DWAF Bonds, outstanding Water Pollution Control Loan Fund (WPCLF) Bonds, and outstanding Water Quality Bonds. The outlook is stable.

RATINGS RATIONALE
The Aaa rating on the Bonds reflects the strong pledged revenue stream provided by the combined DWAF and WPCLF loan pools (loan pool), the availability of substantial funds and reserves that result in a very high default tolerance, and the Authority's established track record of successful management of the program. The rating also incorporates the implementation of the cross-collateralization between the DWAF and the WPCLF programs and the relatively flexible legal covenants which is typical for the sector.

RATING OUTLOOK
The stable outlook is based on our expectation that the Authority will maintain the program's strong metrics, including loan pool credit characteristics, the default tolerance and debt service coverage ratios. Current default tolerance is above the required threshold for the rating level.

FACTORS THAT COULD LEAD TO AN UPGRADE
Not applicable.

FACTORS THAT COULD LEAD TO A DOWNGRADE
Increase in program leverage that results in significant decline in debt service coverage ratios and default tolerance, or a material deterioration of the credit quality of the loan pool.

LEGAL SECURITY
The security for the DWAF Revenue Bonds includes pledged loan repayments after payment of debt service on DWAF Leverage Bonds, excess interest not needed to pay state match bonds debt service, debt service reserve funds, and interest earnings. There are no DWAF state match debt outstanding at this time; however, to the extent that Authority issues new ones, they will be paid on a senior basis from interest portion of the pledged loans repayments originated under the Trust Agreement. The DWAF also benefit from the cross-collateralization with the larger WPCLF program.

USE OF PROCEEDS
The Bonds proceeds will be used to (i) refund previously issued DWAF Revenue Bonds, Series 2010B, (ii) finance loans to municipalities within the state for eligible projects under the DWAF program or reimburse Authority for funds advanced for that purpose, and (iii) pay the costs of issuance.

PROFILE
OWDA was created in 1968 and has provided close to $12 billion of financing for water and wastewater projects throughout the Ohio's 88 counties. Since its creation in 1989, it has been awarded over $2 billion in capitalization grants that required over $400 million in state match.

METHODOLOGY
The principal methodology used in this rating was U.S. State Revolving Fund Debt published in March 2013. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.

REGULATORY DISCLOSURES
For ratings issued on a program, series, category/class of debt or security this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series, category/class of debt, security or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the credit rating action on the support provider and in relation to each particular credit rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.

Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.

Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.

Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating.

Omar Ouzidane
Lead Analyst
Housing
Moody's Investors Service, Inc.
7 World Trade Center
250 Greenwich Street
New York 10007
US
JOURNALISTS: 1 212 553 0376
Client Service: 1 212 553 1653

Florence Zeman
Additional Contact
Housing
JOURNALISTS: 1 212 553 0376
Client Service: 1 212 553 1653

Releasing Office:
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A
JOURNALISTS: 1 212 553 0376
Client Service: 1 212 553 1653

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