NEW YORK - Standard & Poor's Ratings Services said it has raised the rating on San Antonio, Texas' municipal drainage utility system series 2003 and series 2005 revenue bonds to AA-plus from AA-minus'.
"The upgrade reflects the system's trends of strong coverage, high liquidity levels, and good collection rates," said Standard & Poor's credit analyst James Breeding.
The rating also reflects Standard & Poor's assessment of the system's broad, diversified, and growing service area; sound financial performance during the past several years; demonstrated willingness to adjust rates, although overall rates remain low; and economies of scale in the implementation of some functions of the drainage utility in conjunction with San Antonio Water System (SAWS) (AA senior-lien revenue bond rating).
The stable outlook reflects Standard & Poor's expectation for maintenance of high liquidity and strong coverage levels. Given that revenues are not subject to weather-related fluctuation that could affect water and wastewater revenue levels, we anticipate revenue stability.
