DeKalb County CEO Lorraine Cochran-Johnson addresses Moody’s revised outlook for DeKalb County Water and Sewer Enterprise

DECATUR, GA— DeKalb County CEO Lorraine Cochran-Johnson issued a statement today in response to Moody’s Investors Service affirming to the County’s strong  Aa2 credit rating while revising the outlook for the Water and Sewer Enterprise from stable to negative. The County’s Aa3 rating for the enterprise was maintained, signaling continued credit strength despite increased pressure from long-term capital investments.  

The County anticipated this revision in response to its aggressive but necessary capital investment plan. DeKalb is actively implementing a multi-year strategy to rebuild its water and sewer system and comply with the federally mandated consent decree.

“While the outlook has changed, our credit rating remains strong,” said DeKalb County CEO Lorraine Cochran-Johnson. “This moment should not be viewed as a setback, but as a necessary course correction following decades of underinvestment in our infrastructure. The cost of doing nothing would far outweigh the temporary impact of a revised outlook. We are choosing to move forward with transparency, bold leadership, and long-term vision.”

“In consultation with our financial advisors, we made the strategic decision not to raise water and sewer rates even higher in order to preserve the outlook,” said Cochran-Johnson. “Instead, we balanced the need for financial strength with the need to limit the burden on our residents—accepting a possible shift in the outlook in favor of affordability and equity.”

DeKalb’s Water and Sewer system serves more than 224,000 customers and supports public health and economic growth across the county. With this outlook revision, Moody’s pointed to the size of the capital program, projected debt service coverage, and the importance of timely rate implementation.

“The rating affirmation is meaningful and confirms that our credit fundamentals remain sound,” said Chief Financial Officer Dianne McNabb. “We acknowledge that the revised outlook may result in slightly higher interest rates, but this is a manageable cost in the context of the long-term financial strategy we have already set in motion.”

“The water and sewer infrastructure across DeKalb is aging and, in some cases, failing,” added Chief Operating Officer Zachary Williams. “These capital improvements are not optional. They are essential to delivering safe, modern services and fulfilling our consent decree obligations.”

The County is moving forward with key components of its plan, including:

• Implementing scheduled water and sewer rate increases
• Maintaining a minimum projected debt service coverage ratio of 1.4 times
• Managing total borrowing to remain within sustainable limits
• Sustaining reserves equivalent to at least three months of revenue

This outlook applies only to the Water and Sewer Enterprise. DeKalb County’s general obligation credit remains Aa2 with a stable outlook and is not impacted, officials said.

The administration said it will continue to update the public, the Board of Commissioners, and financial stakeholders as it moves forward with its capital improvement program and fiscal recovery strategy.