Standard&Poor's Ratings Services assigned its 'AAA' long-term rating to Charlotte, N.C.'s water and sewer revenue refunding bonds, series 2005A and 2005B, and affirmed its 'AAA' rating on the city's outstanding debt. The 'AAA' rating reflects the city's water and sewer system's: Continued strong growth in the service area and the ability to keep pace with significant new development; Very strong financial performance and the expectation of continued coverage of revenue bonds in excess of 1.98x; High liquidity; Affordable, competitive rates; and Strong system growth with comprehensive planning. The long-term rating also reflects a large capital improvement program (CIP) requiring about $160 million borrowing annually, which will increase revenue-bond debt levels. The bonds are secured by the net revenues
