Standard & Poor's Ratings Services raised its underlying rating to A-plus from A on West Sacramento Financing Authority, Calif.'s water revenue bonds, issued on behalf of the city of West Sacramento.
The outlook is stable.
"The raised rating reflects our view of the water system's continued good financial performance in fiscal years 2013 and 2014, which we believe is sustainable and marks a recovery from a period of insufficiency in fiscal years 2010 and 2011," said Standard & Poor's credit analyst Tim Tung.
The rating reflects the water system's: ample water supply and treatment capacity; good debt service coverage metrics following the implementation of rate increases during the past three fiscal years; and Strong liquidity position.
