About

Pittsburgh, PA — The Pittsburgh Water & Sewer Authority D/b/a Pittsburgh Water priced $156,425,000 in Water and Sewer System First Lien Revenue Bonds, Series A of 2026 on February 24, 2026. The bonds were sold via negotiated sale and are expected to be delivered on or about March 10, 2026.

The 2026 Bonds were issued as new money to (i) retire a portion of the outstanding principal on the Authority’s 2025 Capital Line Note held by PNC Bank, National Association, (ii) fund capital improvements to Authority facilities, (iii) fund the debt service reserve requirement, and (iv) pay costs of issuance. The bonds are secured by a first lien on the revenues of the Authority after payment of current expenses and certain funds held by the trustee under the Senior Indenture. The Senior Indenture requires revenues to cover 125% of senior lien debt service. The Authority reported senior debt service coverage of 1.79x in fiscal year 2024, with net revenues available for debt service of $114,834,000.

Pittsburgh Water has invested approximately $898 million in capital improvements since 2018 as part of a generational effort to modernize aging water, sewer, and stormwater infrastructure, with approximately $1.2 billion budgeted for needed upgrades over the next five years. The Authority filed a multi-year rate increase proposal with the Pennsylvania Public Utility Commission in June 2025 seeking approximately $84.4 million in additional revenue phased over 2026 and 2027 to support its 2025–2029 Capital Improvement Plan, which includes lead service line replacement and major pump station upgrades. Pittsburgh Water serves approximately 116,000 residential, commercial, and industrial customers in the City of Pittsburgh and surrounding communities.

The bonds were priced with all maturities carrying a 5.000% coupon. Yields ranged from 2.180% on the 2028 maturity to 4.550% on the 2056 term bond. The bonds are subject to an optional call on September 1, 2036, at par. The offering includes two term bonds: $36,795,000 due September 1, 2052, priced at a yield of 4.460%; and $36,635,000 due September 1, 2056, priced at a yield of 4.550%.

Ramirez & Co., Inc. and Morgan Stanley & Co. LLC served as co-senior managing underwriters, along with Huntington Capital Markets and Raymond James & Associates, Inc. as co-managing underwriters. Eckert Seamans Cherin & Mellot, LLC and Gosfield Law LLC served as co-Bond Counsel. Public Resources Advisory Group, Inc. and SOA Financial served as co-Financial Advisors to the Authority.

The bonds are rated A2 with a Positive Outlook by Moody’s Ratings and A+ with a Positive Outlook by S&P Global Ratings.

Leber’s distinguished leadership and dedicated Board service make her exceptionally well-suited to serve as Chair.

At its most recent meeting, the Pittsburgh Water Board of Directors has elected BJ Leber to the role of Chair. Leber’s appointment comes after nearly six years of service on the Board of Directors and the retirement of former Chair, Alex Sciulli, in January.

Leber’s leadership in public health and her longstanding commitment to the region brings a strong, people-centered perspective to the Board. As the former President and CEO of Adagio Health for the past decade, she expanded access to essential health, wellness, and nutrition services for nearly 100,000 patients and families each year and strengthened support for women and underserved communities. Her prior experience leading mission-driven organizations across Pittsburgh further demonstrates her ability to build trusted relationships and advance equitable care.

“BJ’s leadership experience and strong record of organizational governance make her an exceptional choice to guide Pittsburgh Water in protecting the health and wellbeing of the vibrant communities we serve,” said CEO Will Pickering. “Her understanding of community needs and her commitment to public service will help steer Pittsburgh Water as we continue advancing critical initiatives to modernize our region’s water, wastewater, and stormwater systems.”

Leber brings extensive governance experience that will strengthen the Board’s strategic oversight of Pittsburgh Water. Her previous service as Secretary and Treasurer of Pittsburgh Water’s Board provides direct insight into the organization’s finances, operations and mission. Her broad leadership and Board experience across the region will further support strong, informed decision making as Pittsburgh Water advances major infrastructure and service initiatives.

Pittsburgh Water’s Board of Directors is comprised of nine volunteer members who are nominated by the Mayor and confirmed by Pittsburgh City Council. Serving with Leber as Officers of the Board include Vice Chair Erika Strassburger, Secretary and Treasurer Megan Leitch, Ph.D., and Assistant Secretary and Treasurer Michael Domach, Ph.D.

Under the leadership and guidance of the current Board, Pittsburgh Water continues to grow as a national leader in lead remediation and infrastructure investment. In recent years, the Board has supported major advancements in the Water Reliability Plan, significant progress toward replacing all residential lead service lines by the end of 2027, enhanced customer assistance programs, and continued improvements in water quality, including record-low lead levels.

“Pittsburgh Water has a significant quality-of-life impact on every person we serve. I am honored and excited to have the opportunity to assume the role of Board Chair and continue to advance Pittsburgh Water’s work and leadership,” said Chair BJ Leber. “I look forward to working with the Board and staff to maintain our high levels of excellence and to continue to improve water services for current and future generations of customers.”

Pittsburgh, PA - Pittsburgh Water has received Positive outlooks on its credit ratings from both Moody’s Ratings and S&P Global Ratings, reflecting strong financial management and continued confidence in the utility’s ability to fund critical infrastructure investments.

The agencies affirmed Pittsburgh Water’s strong underlying credit ratings – A2 from Moody’s and A+ from S&P – and cited steady financial performance, improving regulatory relationships, and disciplined execution of capital projects as key drivers behind the outlook upgrades.

“The recent outlook upgrades from both Moody’s and S&P are further validation that our leadership team and Board of Directors are managing public finances responsibly,” said Pittsburgh Water CEO Will Pickering. “By continuing to manage our investments effectively, we will strengthen our vital public infrastructure and ensure reliable service for generations to come,” he continued.

The ratings were announced as Pittsburgh Water prepares to issue approximately $125.6 million in new bonds to support its capital improvement program.

What the rating agencies highlighted

According to S&P Global Ratings, the positive outlook reflects expectations that Pittsburgh Water will:

• Continue successfully delivering major capital projects
• Maintain strong financial metrics during an intensive investment period
• Strengthen its working relationship with the Pennsylvania Public Utility Commission

S&P also noted that there is a one-in-three chance of a future credit rating upgrade over the next two years if current performance trends continue.

Moody’s Ratings cited:

• Consistent financial results supported by strong management
• Solid debt service coverage and liquidity levels
• A clear commitment to making the investments needed to modernize aging infrastructure

Moody’s stated that a future upgrade could occur if coverage and cash reserves remain stable while Pittsburgh Water moves through the most capital-intensive phase of its improvement plan.

Long-term financial progress

Since 2018, Pittsburgh Water has steadily strengthened its credit profile:

• Moody’s: One credit rating upgrade and three outlook upgrades, now A2 with Positive outlook
• S&P Global Ratings: One credit rating upgrade and one outlook upgrade, now A+ with Positive outlook

“These positive outlooks reflect years of deliberate financial planning and operational improvements,” said Edward Barca, Pittsburgh Water’s Director of Finance. “They reinforce our ability to invest in critical infrastructure while maintaining financial stability and affordability for our customers.”

Pittsburgh Water’s capital improvement program exceeds $1 billion and focuses on replacing aging infrastructure, improving system reliability, and meeting regulatory requirements that protect public health and the environment.

For more information about Pittsburgh Water’s financials, including its Capital Improvement Program and Operating Budget, please visit pgh2o.com/finance.