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NBU Earns Moody’s Aa1 Rating for Strong Financial Management and Planning

Recognition supports long-term investments while helping keep customer costs stable 

FOR IMMEDIATE RELEASE
Contact: Charlcee Cervantez
Senior Communications Specialist
830.312.7915 | communications@nbutexas.com

NEW BRAUNFELS, Texas (May 6, 2026) – Moody’s Ratings has reaffirmed New Braunfels Utilities’ (NBU) Aa1 credit rating. These ratings give investors confidence in NBU, helping to secure funding at lower interest rates for critical infrastructure projects. 

For customers, this recognition helps keep costs down. When NBU can sell bonds at lower interest rates, it spends less on financing large infrastructure projects like water lines, power systems and treatment facilities. As a non-profit utility, that means more of each dollar goes directly toward improving service rather than paying higher interest.  

Moody’s Ratings is an independent company that evaluates the financial strength and long-term stability of utilities, businesses and governments. Its credit ratings help investors understand an organization’s financial position and ability to meet its financial commitments.  

“Our strong credit rating reflects the disciplined financial management our community expects from NBU and demonstrates to investors that we are stable, well-managed and planning responsibly for the future. That confidence helps us secure lower interest rates for critical infrastructure projects, reducing overall costs for our customers.” said Jessica Williams, chief financial officer of New Braunfels Utilities.

What Moody’s noted 
Moody’s cited NBU’s strong financial position, including healthy cash reserves, a growing customer base and long-term planning, as key factors supporting the rating. In its report, Moody’s highlighted: 

  • A growing customer base driven by regional growth  
  • Strong liquidity, with 291 days cash on hand to help manage unexpected costs 
  • Debt service coverage of 3 times in fiscal year 2025, and is projected to be around 3.5 on fiscal year 2026 (Debt service coverage is a financial measure that shows whether utility revenues are sufficient to meet annual debt payments.) 
  • Responsible financial planning to support future infrastructure needs like water and sewer lines, power poles, and transformers 

Moody’s noted that the outlook is stable, reflecting the utility’s healthy operations that will continue to be guided by strong management practices. 

For more information about NBU’s finances, visit https://www.nbutexas.com/nbu-financial-information/.  

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About New Braunfels Utilities:

New Braunfels Utilities (NBU) is a not-for-profit, community-owned provider of electric, water and wastewater services. NBU strives to be a trusted community partner with a mission of providing resilient essential services to over 60,000 customers. Utility revenues are continually invested back into the very systems that provide electricity and water to our customers’ homes and businesses. Additionally, New Braunfels Utilities makes an annual transfer to the City of New Braunfels, which in turn helps to pay for services such as fire, police and city parks. NBU is governed by a Board of Trustees comprised of the mayor and four appointed residents. Visit nbutexas.com to learn more about our services and follow NBU on Facebook at facebook.com/newbraunfelsutilities, on X at @nbutexas or on Instagram at @nbutexas.