The ratings on Austin, Texas' prior lien combined utility system revenue bonds, the subordinate lien combined utility system revenue bonds, and the electric utility system revenue bonds reflect the following credit strengths: Progress in the utility's process of restructuring its utility debt, maintaining sound operational reserves, and stable rates; Diversified generation resource mix with owned assets providing essentially all system needs, limiting exposure to volatile market prices; Solid debt service coverage (DSC) historically near or exceeding 2 times (x) on both senior- and junior-lien combined revenue bonds; and Limited customer concentration with the top ten customers providing only 8.8% of revenues in fiscal 2001. In addition to these credit strengths, the ratings reflect: The subordinate-lien position of the bonds, junior
