Moody's withdraws rating from Florida Water Services Authority's revenue bonds, citing significant court delay

NEW YORK, March 12, 2003 -- Moody's has withdrawn the Baa3 rating assigned to Florida Water Services Authority's $545 million Utility System Revenue Bonds, Series 2003.

The bonds, which were rated on January 16, 2003, were expected to finance the Authority's purchase of Florida Water Services Corporation's water and sewer system located throughout 26 counties within the State of Florida.

The rating is withdrawn due to the ratings service's expectation of continued protracted delay in the bond sale, resulting most recently from a court decision on March 7th that imposed a permanent injunction on the sale of the system without approval by the Florida Public Services Commission, a state regulatory body.

On March 10th, Florida Water Services Corporation announced its intent to terminate its agreement to sell the system to the Authority.