Moody’s Investors Service raised the underlying rating on Chandler, Ariz., water and sewer revenue bonds to Aa2 from Aa3. The upgrade affects $80.9 million of outstanding senior-lien net utility revenue debt.

The upgrade reflects several factors, including a shift in the city’s rate-setting practice, with a renewed commitment to reviewing and raising rates as necessary, a strong balance sheet with solid cash reserves, and sound coverage of senior-lien debt by pledged revenues. Sound coverage of senior-lien debt is expected to be preserved and then grow given that future bonding is expected to be secured by the city’s general obligation or excise tax pledge.

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