...Texas Utility Ratings Steady: The majority of Texas utility ratings continue to remain unchanged without significant negative effects to date, despite the ongoing drought. The average Texas water and sewer utility rating of `AA' is expected to be maintained over the foreseeable future. Stable Fiscal 2013 Metrics: Fiscal 2013 financial metrics for most Texas utilities remained stable, at or near fiscal 2012 levels. Adopted rate adjustments generally were adequate to keep pace with climbing debt service costs and operating expenses. Fiscal 2013 cash levels were down slightly from the drought-boosted balances of fiscal 2012 but remain healthy overall. Fiscal 2014 Metrics Slip: Fitch anticipates that continued flat to declining consumption levels will result in reduced sales, which, in turn, will likely lead to some further modest erosion of median statewide audited financial results for the year. Drought Improving but Ongoing: La Ni±a conditions that sparked the current drought have eased,...
