LOS ANGELES -- Standard & Poor’s raised its rating to AAA from AA-plus on Mesa Water District, Calif.’s subordinate-lien series 2010 revenue certificates of participation. The outlook is stable.

The rating agency also said it affirmed its AAA rating on the district’s senior-lien series 2009 revenue COPs.

“We are raising the rating on the 2010 COPs based on our view of the district’s strengthening financial profile and the completion of the district’s colored-water treatment facility, which virtually eliminates the district’s need for imported water supply,” said Standard & Poor’s credit analyst Tim Tung.

S&P cited the following qualities in giving the water district’s COPs the highest rating:

The district has a built-out service area located in affluent coastal Orange County and a diverse customer base that is primarily residential and stable. It also has a drought tolerant local water supply that is adequate to meet long-term demand; a manageable five-year capital improvement plan that doesn’t involve additional borrowing; and a strong financial profile with improving debt service coverage and liquidity levels during the past five fiscal years.

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