The 'AAA' long-term rating on Charlotte, N.C.'s bonds reflects the city's water and sewer system's: Continued strong growth in the service area and the system's ability to keep pace with significant new development; Very strong financial performance and the expectation of continued coverage of revenue bonds in excess of 1.89 times (x); High liquidity; Affordable, competitive rates; and Strong system growth with comprehensive planning. The rating also reflects a large capital improvement program (CIP) requiring about $100 million borrowing annually, which will increase revenue bond debt levels. The 'A-1+' short-term rating reflects a liquidity facility provided by Bank of America, N.A. ('AA-/A-1+'). The liquidity facility, a standby bond purchase agreement (SBPA), provides coverage for principal and up to 183 days
