Standard & Poor's Ratings Services said it raised its underlying rating on Erie, Colo.'s wastewater revenue debt one notch to A-plus from A.
The outlook is stable.
The upgrade reflects Standard & Poor's opinion of the city's robust historical and projected debt service coverage, excluding tap fees, which Standard & Poor's expects to remain stable.
In addition, the rating service is withdrawing its rating on the series 2009B wastewater enterprise revenue bonds because the city never issued the debt.
"We could lower the rating if debt service coverage and liquidity were to deteriorate," said Standard & Poor's credit analyst Jose Razo. "While not likely to occur within our two-year outlook period, we could raise the rating further if the system were to experience healthy debt service coverage excluding tap fees."
A net wastewater system revenue pledge secures the bonds.
