Standard & Poor's Ratings Services said it raised its rating on El Paso, Texas' municipal draining utility system bonds outstanding to AA-plus from AA.
At the same time, Standard & Poor's assigned its AA-plus rating and stable outlook to the city's 2015 municipal drainage utility system bonds.
"The upgrade reflects a trend of strong coverage, coupled with expectations for continued strong coverage despite additional bonds being issued," said Standard & Poor's credit analyst James Breeding.
The rating reflects the drainage system's: large and diverse customer base that continues to grow; strong historical debt service coverage (DSC) and liquidity levels; projections for good coverage and liquidity to continue, though at a lower level due to planned debt issuance through fiscal 2020; and ability to discontinue water service due to the nonpayment of drainage fees, ensuring strong collections.
