Standard & Poor's upgraded the rating on Santa Rosa, Calif.'s wastewater system revenue bonds to AA-minus from A-plus.
The outlook is stable.
"The raised rating reflects our view of the wastewater system's stable customer base and continued strong liquidity," said Standard & Poor's credit analyst Robert Hannay. "Further supporting the rating is our view of the wastewater system's strong debt service coverage during the past two years."
The wastewater system includes a collection system within Santa Rosa and a regional wastewater treatment plant that treats sewage from retail customers and four wholesale customers. These include the cities of Rohnert Park, Cotati, and Sebastopol, and the South Park County Sanitation District.
As of June 30, 2012, the system covered 48,159 accounts within Santa Rosa, with its wholesale customers covering about 16,000.
Santa Rosa is located about 52 miles north of San Francisco, and is the population, economic, and employment center for Sonoma County.