Area water providers are now also taking a hit from Corpus Christi’s declining credit ratings and ratings outlooks.
S&P Global Ratings on May 4 downgraded the city’s utility system credit ratings from a score of AA- to an A, pointing to Corpus Christi’s precarious water situation.
The agency had also revised its assessment of the city’s “outlook” from stable to negative.
Two days later, S&P announced similar changes for other area water providers, dropping their outlooks from stable to negative, but did not amend their ratings, a news release on the agency’s website shows.
The utilities providers listed in the post include Alice Water Authority, Nueces County Water Control and Improvement District No. 3, Nueces County Water Control and Improvement District No. 4, the city of Portland and the San Patricio Municipal Water District.
Each are customers of Corpus Christi Water or draw their water supply from the same resources used by the city, according to the release.
“The negative outlooks reflect a one-in-three chance we could lower the ratings during the two-year outlook period based upon our view of Corpus Christi’s acute drought and the execution risks as a regional water provider involved with securing additional water supply sources,” the message states. “We believe the costs and potential water curtailments required for Corpus Christi to provide a sufficient water supply could pressure these utilities’ operations, finances, and economic stability.”
It notes that while the South Texas Water Authority also purchases water from the city, “we did not change our rating or outlook on its debt because the outlook was already negative.”
The news release also specifically mentions Alice Water Authority as having “a more resilient water supply that is centered on utilizing a groundwater desalination plant and draws from Lake Findley that have reduced its untreated water purchases from Corpus Christi since 2025,” adding that there are plans for “a second brackish groundwater well by the end of June that will double its treatment output to 3 mgd.”
“Although the utility is not currently sourcing raw water from Lake Corpus Christi, nor does it plan to for supply purposes, and does not expect any water curtailments, we believe the utility faces heightened operational risks until the groundwater desalination plant meets the city’s full daily demand,” it states.
Kirsten Crow covers city government and water news. Have a story idea? Contact her at kirsten.crow@caller.com.
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This article originally appeared on Corpus Christi Caller Times: Area utilities facing ripple effects of Corpus Christi’s water crisis
Reporting by Kirsten Crow, Corpus Christi Caller Times / Corpus Christi Caller Times
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