Funding gap for water sector remains despite federal assistance, Fitch says
Despite the significant infusion of funds from the American Rescue Plan Act (ARPA) and the Bipartisan Infrastructure Law (BIL), Fitch Ratings said it estimates a funding gap in excess of $85 billion over the next five years for water and sewer utilities that will need to be covered by paygo or additional debt. According to Fitch, federal funding under ARPA and the BIL is supportive of water utility credit quality as it helps maintain and improve existing infrastructure, thereby moderating increases in Fitch’s life cycle ratio, a measure of the age of capital assets. Federal grants under these laws also offset some [...]