SPSA : Press Room

(April 17, 2007 CHESAPEAKE, VA) – One of the nation’s leading bond rating and investor service firms has rated as “stable” $132 million dollars in revenue bonds issued by the Southeastern Public Service Authority (SPSA).
           Moody’s Investors Service affirmed an A3 rating for bonds classified as “senior lien waste revenue bonds,” saying “the stable outlook is based on our expectation that the Authority will continue to maintain adequate control over its waste stream in the near term” through unbroken contracts and appropriately priced open-market rates, and on the expectation SPSA will maintain adequate financial margins.
           Moody’s report says “positive and sustained change in financial ratios” (such as reduced debt) and continued control over its waste stream could lead to SPSA’s bonds being more highly rated, and “significant loss of solid waste deliveries or adequate disposal capacity, resulting in a loss of revenue” could lower the rating.
           According to Moody’s, SPSA has in its favor:

The recent court decision obligating SPSA member-communities to pay SPSA’s debt.
SPSA’s member-communities are generally highly rated and financially stable, and the SPSA region is growing.
The credit support provided by the member-communities allows the Authority to attract commercial waste by keeping commercial tipping fees competitive. Tipping fees are fees charged for processing waste.
About 70 percent of tonnage delivered to SPSA is under contract, giving predictability to SPSA’s workload and revenue stream.
SPSA’s volume of waste has grown 7.5 percent between 2000 and 2006.

In March 2006, Moody’s upgraded SPSA bonds to A3 from Baa1. For additional information, contact Felicia Blow at (757) 420-4700.

SPSA has been providing efficient and environmentally sound waste disposal services to the region and its residents since 1985. SPSA’s solid waste management system includes waste-to-energy, yard waste composting, drop-off and curbside recycling as well as other recycling programs, household hazardous waste collection, landfilling, landfill gas-to-energy and education programs. This integrated waste management system enables SPSA to put 57% of the waste it receives to a beneficial use, thus allowing the region to reduce its dependence on landfills.