LOS ANGELES -- The outlook on municipal water, sewer, and drainage utility revenue-secured debt is mostly stable, but the sector will continue to face rate and drought pressures in 2013, according to a recent report from Standard & Poor’s.

The volume of bond issuance in the sector rose more than 40% last year from 2011, even with the prospect of a federal budget impasse. Issuers were taking advantage of low interest rates to refinance their debt or fund new projects, which Standard & Poor’s expects to continue this year.

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