Fitch Ratings: EPA cyber rule for water systems could prompt credit downgrades

The Environmental Protection Agency’s requirement that public water systems incorporate cybersecurity measures into sanitary surveys will add an increased regulatory burden that may strain budgets and impact systems’ credit ratings, according to Fitch Ratings.

“Given that there was little federal cyber regulation for the sector prior to this memorandum, many utilities will likely have deficiencies cited in sanitary surveys,” the credit ratings agency said in a May 11 statement.

“Should deficiencies not be remedied and result in a breach,...