Kevin Bethel,
Chief Financial Officer
New York, March 15, 2017 -- Summary Rating Rationale
Moody's Investors Service has affirmed the P-1 ratings of Las Vegas Valley Water District, NV General Obligation (Limited Tax) Water Commercial Paper Notes (SNWA Revenue Supported), Series 2004A and Series 2004B (collectively, the Notes). The ratings are being affirmed in conjunction with the upcoming replacements of the existing credit agreements with the substitute (i) standby letter of credit provided by Sumitomo Mitsui Banking Corporation for Series 2004A and (ii) credit agreement provided by U.S. Bank, N.A. for Series 2004B (collectively, the Liquidity Facilities). Upon the effective date of the substitute Liquidity Facilities, scheduled for April 4, 2017, the P-1 ratings will be derived from the credit quality of each Liquidity Facility provider and Moody's assessment of the likelihood of an early termination of the applicable liquidity facility without payment of the Notes. Events that would cause termination of the Liquidity Facilities without payment of the Notes are directly related to the credit quality of the general obligation pledge of the Las Vegas Valley Water District (the District). The District's long-term rating is Aa1. The Notes are also supported by a lien on the pledged revenues of the Southern Nevada Water Authority (SNWA). SNWA is not rated by Moody's. Moody's current short-term counterparty risk assessment of Sumitomo Mitsui Banking Corporation and U.S. Bank, N.A. (collectively, the Banks) is P-1(cr).
