Michael McGrath (Cork South Central, Fianna Fail)
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235. To ask the Minister for Environment, Community and Local Government if Irish Water has been provided a credit rating by international credit ratings agencies; and if he will make a statement on the matter. [8691/15]

Alan Kelly (Tipperary North, Labour)
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Irish Water is a non-consolidated subsidiary of Ervia and does not, at this point in time, have a separate credit rating. Ervia has an investment grade credit rating from each of Standard & Poor’s and Moody’s. Each of these ratings reflects the current relationship between Ervia and Irish Water. It is Ervia's intention to seek a stand-alone credit rating for Irish Water at an appropriate time in the future.

Michael McGrath (Cork South Central, Fianna Fail)
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236. To ask the Minister for Environment, Community and Local Government the current level of borrowing undertaken by Irish Water; its approximate cost; and if he will make a statement on the matter. [8692/15]

Michael McGrath (Cork South Central, Fianna Fail)
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237. To ask the Minister for Environment, Community and Local Government the approximate level of borrowing Irish Water will have to undertake, over the next ten years, to fulfil its capital investment programme; and if he will make a statement on the matter. [8693/15]

Alan Kelly (Tipperary North, Labour)
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I propose to take Questions Nos. 236 and 237 together.

Irish Water has a €300 million loan from the NPRF at an annual interest rate of 2.5%.  There is no security for this loan but the loan is guaranteed by the Minister for Finance, for which a separate guarantee fee is payable.

Irish Water has put in place facilities with commercial banks in the amount of €150 million While the names of lenders and applicable interest rates are commercially sensitive the interest rate on the loans are competitive and at market rates. Further facilities of some €250 million are at an advanced stage and are expected to be in place shortly.

Irish Water’s capital investment in the period 2014 to 2021 will be funded by a mix of debt and equity (including capital transfers from Government) with the investment programme for the period after end 2016 being subject to future review by the CER.  Irish Water is in the process of finalising its detailed business plan for the period 2015 to 2021, which will include an analysis of the level of debt that it expects to be in a position to raise.

Under Section 35 (1) (b) of the Water Services (No 2) Act 2013 Irish Water’s current borrowing limit is €2 billion.  Irish Water’s current forecast of total borrowing at end 2016 of €1.7 billion is within this limit.  Under Section 35 (1) (a) any borrowing by Irish Water must be approved by the Minister for the Environment Community and Local Government, the Minister for Communications, Energy and Natural Resources, the Minister for Finance and the Minister for Public Expenditure and Reform.