DALLAS (Standard&Poor's) July 10, 2002 – Standard&Poor's has assigned its single-'A'-minus rating to the $145.9 million Austin, Texas water and wastewater system revenue refunding bonds, series 2002A due 2017. The outlook is positive. The bonds are scheduled to sell on July 18. The rating reflects concerns that these bonds are subordinate, that the system plans substantial capital investment over the next five years, most of which is expected to be financed with additional debt, and liberal legal provisions. These concerns, however, are moderated by the system's long-term water supply agreement with the Lower Colorado River Authority, the strong wealth and income levels of the Austin area, and strong debt service coverage. The positive outlook reflects Standard
