Sarasota, Fla., Upgraded to AA by Fitch

Fitch Ratings said it upgraded to AA from AA-minus Sarasota, Fla.'s approximately $63 million in outstanding water & sewer revenue bonds.

The rating outlook is stable.

The bonds are secured by a senior lien pledge of net system revenues.

Financial results have been somewhat mixed historically, but have improved over the past few years with rate increases and expenditure controls leading to stronger margins and debt service coverage (DSC).

Scheduled declines in annual debt service in fiscal 2013, and again in fiscal 2016, are expected to lead to further strengthening in the system's financial metrics.

Liquidity has increased dramatically as a result of proceeds of the sale of city-owned land in fiscal 2011. Fitch projects liquidity will remain high despite plans to use some of the cash for capital spending.

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