Standard & Poor's Ratings Services said it raised its rating to A-plus from A on Del Paso Manor Water District, Calif.'s series 2010 revenue certificates of participation (COPs).
The outlook is stable.
"The raised rating reflects our view of the district's improved debt service coverage driven by planned service rate increases," said Standard & Poor's credit analyst Tim Tung.
The stable outlook reflects the view that the district will likely maintain strong debt service coverage (DSC) and cash reserves during the two-year outlook period. Supporting the district's stability are the primarily residential nature of its customer base, its ample water supply, and its participation in the Sacramento economy.
The rating could get raised if the district continues to set water rates to generate consistently strong DSC levels while funding capital needs through additional borrowing and maintaining a strong liquidity position. The agency does not anticipate lowering the rating during the next two years.
