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 f...

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Bibliographic Details
Main Authors:	Kimani, Angela, Advani, Rajesh, Sy, Jemima
Format:	Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2014
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 http://hdl.handle.net/10986/17330

Description
Summary:	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.

Financing Urban Water Services in Kenya : Utility Shadow Credit Ratings

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