Financing Urban Water Services in Kenya : Utility Shadow Credit Ratings

The Water Services Regulatory Board (WASREB), with support from the Water and Sanitation Program, is exploring the potential for urban water services providers (WSPs) to access medium-term finance from commercial lenders. The debt will be used to finance infrastructure investment to improve access to water services by Kenyans. This paper presents the results of a credit assessment and shadow rating exercise for 43 urban WSPs. The objective of the credit assessment is to provide borrowers and lenders with an overview of the creditworthiness of WSPs to support access to local currency finance from the domestic financial market. It gives an overview of the credit capacity of water utilities, provides utilities with a diagnostic to identify areas for improvement, and exposes financial institutions to potential lending opportunities in the water sector. Commercial finance in water is seen as a supplementary resource to public finance, which remains the predominant source of investment funds in the sector.

Bibliographic Details

Main Authors:	Kimani, Angela, Advani, Rajesh, Sy, Jemima
Language:	English en_US
Published:	World Bank, Washington, DC 2011-11
Subjects:	ACCESS TO CREDIT, ACCESS TO FINANCE, ACCESS TO MARKET, ACCESS TO SAFE WATER, ACCESS TO SERVICES, ACCOUNTING, ACCOUNTS RECEIVABLE, ACCOUNTS RECEIVABLES, ADMINISTRATIVE FEES, BALANCE SHEET, BALANCE SHEETS, BANKS, BENCHMARKING, BENEFITS OF CREDIT, BONDS, BORROWER, BORROWING, BORROWINGS, CAPITAL INVESTMENT, CAPITAL INVESTMENTS, CASH FLOW, CASH FLOWS, CENTRAL BANK, COLLECTION EFFICIENCY, COMMERCIAL DEBT, COMMERCIAL FINANCE, COMMERCIAL FINANCING, COMMERCIAL LENDERS, COMMERCIAL LOAN, COMMERCIAL LOANS, CONSUMERS, CORPORATE GOVERNANCE, COST RECOVERY, CREDIT ANALYSIS, CREDIT ASSESSMENT, CREDIT CAPACITY, CREDIT MANAGEMENT, CREDIT QUALITY, CREDIT QUALITY RATING, CREDIT RATING, CREDIT RATING AGENCIES, CREDIT RATING AGENCY, CREDIT RATINGS, CREDIT SCORE, CREDIT SCORES, CREDIT STANDING, CREDITORS, CREDITWORTHINESS, CUBIC METER, CUBIC METER OF WATER, CUSTOMER BASE, CUSTOMER RELATIONS, DEBT, DEBT CAPACITY, DEBT INSTRUMENT, DEBT INSTRUMENTS, DEBT OBLIGATIONS, DEBT SERVICE, DEBT SERVICE OBLIGATIONS, DEBT SERVICE PAYMENT, DEBT SERVICE PAYMENTS, DEBTOR, DEBTORS, DEBTS, DEFAULT RATE, DEFAULTS, DEPENDENT, DEPOSITS, DEVELOPMENT BANK, DOMESTIC BANKS, DOMESTIC BOND, DOMESTIC CREDIT, DOMESTIC CREDIT RATING, DOMESTIC FINANCIAL MARKET, DUE DILIGENCE, EMERGING MARKET, EMERGING MARKET ECONOMIES, EMPLOYEE, ENABLING ENVIRONMENT, ESCROW, ESCROW ACCOUNT, EVENT OF DEFAULT, EXPENDITURE, EXPENDITURES, EXTERNAL SHOCKS, FINANCE COSTS, FINANCES, FINANCIAL ANALYSIS, FINANCIAL INSTITUTIONS, FINANCIAL MARKET, FINANCIAL MARKETS, FINANCIAL OBLIGATIONS, FINANCIAL RESOURCE, FINANCIAL RESOURCES, FINANCIAL SECTOR, FINANCIAL STATEMENTS, FINANCIAL SUPPORT, FINANCIAL SUSTAINABILITY, FINANCIAL VIABILITY, FINANCIERS, FISCAL RESOURCES, FORMAL CREDIT, GDP, GOOD CREDIT, GOVERNANCE STRUCTURE, GOVERNMENT BUDGET, GOVERNMENT SUPPORT, GROSS DOMESTIC PRODUCT, HUMAN RESOURCES, HUMAN RIGHT, INCOME STATEMENT, INCOME TAX, INDEXATION, INFLATION, INFORMATION MANAGEMENT, INFRASTRUCTURE DEVELOPMENT, INFRASTRUCTURE INVESTMENT, INTEREST EXPENSE, INTEREST PAYMENTS, INVESTING, INVESTMENT CAPITAL, INVESTMENT COSTS, INVESTMENT FINANCING, INVESTMENT FUNDS, INVESTMENT PLAN, INVESTMENT PLANNING, INVESTMENT PLANS, INVESTMENT PROJECTS, JUDGE, JUDGMENT, LEASE FEE, LENDER, LEVERAGE, LEVIES, LEVY, LIMITED LIABILITY, LIMITED LIABILITY COMPANIES, LIQUID ASSETS, LIQUIDATION, LIQUIDATION VALUE, LIQUIDITY, LOAN, LOAN PROCEEDS, LOAN REPAYMENT, LOCAL CURRENCY, LONG-TERM FINANCE, MANDATES, MARKET ECONOMIES, MARKET FINANCE, MUNICIPALITIES, NONPAYMENT, NUMBER OF CONNECTIONS, NUMBER OF DEBTOR, OPERATING COST, OPERATING COSTS, OPERATIONAL PERFORMANCE, OUTSTANDING DEBT, PENALTIES, PENSION, PENSION FUNDS, PERFORMANCE INDICATORS, PIPELINE, POPULATION GROWTH, PORTFOLIOS, POTABLE WATER, POTENTIAL BORROWERS, POTENTIAL LENDER, PRIORITY OF PAYMENTS, PRIVATE SECTOR FINANCE, PRIVATE SECTOR FINANCING, PROBABILITY OF DEFAULT, PROFIT MARGIN, PROFITABILITY, PROVISION OF WATER, PUBLIC FINANCE, PUBLIC FUNDS, RESERVE, RESERVE FUND, RESERVES, RETURN, RISK MANAGEMENT, RISK OF DEFAULT, SALARIES, SECURITY STRUCTURE, SERVICE DELIVERY, SERVICE PROVIDER, SERVICE PROVISION, SEWERAGE COMPANY, SEWERAGE INFRASTRUCTURE, SEWERAGE SERVICES, SHORT-TERM LIQUIDITY, SOFT LOANS, SOLVENT, SOVEREIGN BENCHMARK, SOVEREIGN RATINGS, SPECIFIC DEBT, STOCK EXCHANGE, SUPPORT FROM GOVERNMENT, TARIFF POLICY, TARIFF RATES, TARIFF REFORM, TARIFF REVISIONS, TAX LIABILITY, TERMS OF DEBTOR, TOWNS, TRANSPARENCY, TREASURY, UNEMPLOYMENT, URBAN AREAS, URBAN UTILITIES, URBAN WATER, UTILITY MANAGERS, VALUE ADDED, WATER ASSOCIATION, WATER CONSERVATION, WATER COVERAGE, WATER PROJECTS, WATER QUALITY, WATER RESOURCE, WATER RESOURCES, WATER RESOURCES MANAGEMENT, WATER SALES, WATER SECTOR, WATER SERVICE, WATER SERVICE PROVIDERS, WATER SERVICES, WATER SUPPLY, WATER SYSTEMS, WATER UTILITIES,
Online Access:	http://documents.worldbank.org/curated/en/2011/11/15917868/financing-urban-water-services-kenya-utility-shadow-credit-ratings https://hdl.handle.net/10986/17330
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