The rating upgrade on Charlotte, N.C.'s water and sewer system revenue bonds reflects: Very strong financial performance and expectation of continued coverage of revenue bonds in excess of 2.5 times (x); High liquidity; Affordable, competitive rates; and Strong system growth with comprehensive planning. Also reflected in the rating is a large capital program, requiring about $100 million of annual borrowing over the next seven years. Charlotte's water and sewer system, which serves a large area of the city and Mecklenburg County, has shown solid growth in customers, reflecting the strong economic base and high levels of growth and development occurring in the service area. The system was originally financed with GO bonds and this is only the second revenue bond