The 'A-' rating on Austin, Texas' water and wastewater system revenue refunding bonds reflects: A water supply agreement with Lower Colorado River Authority (LCRA) that effectively secures a long-term water supply, The strong wealth and income levels of the Austin MSA despite general economic downturns, and A demonstrated willingness to adjust rates to help fund the large capital improvement plan (CIP). Factors that moderate these concerns include: A subordinate lien on net revenues of the water and wastewater system that secures the bonds, junior to about $1.2 billion in combined prior-lien utility system obligations; A sizable CIP of about $700 million through 2007: as much as 80% of which is expected to be financed with additional debt; A concern that
