DALLAS - The Bexar Metropolitan Water District's underlying A credit rating is off Standard & Poor's negative watch after the San Antonio-based utility raised water rates to replenish its dwindling cash reserves.

The rating agency placed the utility on CreditWatch on March 13 after net revenues were reported as insufficient for monthly payments to the interest and sinking fund for debt service. The resulting shortfall represented a technical default under the district's bond covenants.

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