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S&P Global Ratings raised Hillsborough County, Florida’s utility revenue debt to AAA from AA-plus Thursday, citing strong financial statistics. The outlook is stable. 

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The debt is secured by a first-lien pledge on net revenue from the water and sewer system. 

The system has strong debt service coverage (2.8 times as of Sept. 30, 2025) and liquidity (523 days of operating expenses on that date), S&P said.

“While the system has a sizable capital plan, estimated at about $2.8 billion over the next five years, which will require significant bonding and the use of reserves, management projections show continued increases in cash and all-in debt service converge above two times, guided by preapproved rate increases through 2032,” S&P said. 

S&P also cited existing rates it considered affordable given service-area incomes. 

The area in Southwest Florida is growing and diverse, S&P said. The utility provides service in mainly unincorporated areas around Tampa and St. Petersburg.

The utility benefits from a low debt-to-capitalization ratio, the agency said.

Finally, S&P cited “good operational and financial management practices as evidenced by the system’s strong asset management strategy, instituted plans to meet future capacity needs and robust rate-setting practices.”  

The water and sewer system had $447 million in debt outstanding as of Sept. 30, 2025, and S&P expects the system to issue $510 million of new money bonds later this year.

Hillsborough County didn’t immediately respond to a request for a comment.

The county’s water and sewer revenue bonds are rated Aaa by Moody’s Ratings and AAA by Fitch Ratings.