For Immediate Release: Monday, May 11, 2026
Click here to download a PDF of S&P Global’s full report.
BIRMINGHAM – S&P Global Ratings (S&P Global) today removed Central Alabama Water (CAW) from “CreditWatch Negative” and changed its Outlook to “Stable” while affirming its AA- bond rating.
“CAW’s leadership team is pleased that S&P Global positively acknowledged the actions CAW is taking to improve its financial situation,” said Jeffrey F. Thompson, CEO of Central Alabama Water. “Difficult decisions were required to move the system in the right direction operationally and we still have a long road ahead to become the system our community and customers deserve. S&P Global’s validation of the actions taken so far is an indication that we are headed in the right direction.”
In its rationale for today’s update, S&P Global cited the revised operations and maintenance budget and capital budget CAW adopted in March. Both budgets reduced expenditures while meeting the utility’s most pressing needs.
When S&P Global downgraded CAW’s bond rating in February, it said the action was based on weakening finances at Alabama’s largest water utility that developed over several years.
“Every decision at CAW is focused on the long-term best interest of the system and its customers,” Thompson said. “We are proud that S&P Global recognizes the fiscally responsible work our team is achieving every single day for customers across our service area. We look forward to the work ahead and will continue to take steps to improve CAW and provide our customers with the world-class water utility they deserve.”
Since November 2025, the executive team has taken steps to improve the utility’s financial outlook and limit negative impact on customers by reducing operating costs. CAW’s leadership team and board are adhering to a policy of ensuring the system’s operational costs are appropriately managed before considering the implementation of rate increases for residential and commercial customers in the future.
Click here to read S&P Global’s report.
About Central Alabama Water
Central Alabama Water serves customers in Jefferson, Shelby, St. Clair, Blount and Walker counties. It operates four water treatment facilities and maintains more than 4,150 miles of water mains in its distribution network. Please visit caw‑al.gov for more information.
