NEW YORK - Standard & Poor's Ratings Services said it revised its outlook to negative from stable on Beaverton, Ore.'s water revenue bonds. Standard & Poor's also affirmed its AA-plus long-term rating and underlying rating on the bonds.

"The outlook revision is based on our view of debt service coverage levels that have declined in recent years," said Standard & Poor's credit analyst Adam Torres.

The rating reflects the water enterprise's: healthy service area economy in the Portland region; good system capacity, with some reliance on storage to meet peak demand; strong liquidity levels that we anticipate will remain stable; and no additional debt plans through at least fiscal 2016.

The negative outlook reflects declining debt service coverage, which should improve to strong levels during fiscal 2013 based on rate increases that management anticipates will take effect later this year.

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