Standard&Poor's Ratings Services affirmed its 'AAA' long-term rating and underlying rating (SPURs) on East Bay Municipal Utility District (EBMUD), Calif.'s outstanding wastewater system subordinated revenue refunding bonds. The rating reflects our opinion of the district's: Very strong financial management, with ample cash liquidity equal to more than 323 days' operations and debt service coverage (DSC) of no less than 1.51x -- both historically (to at least 2004) and projected; Broad and diverse underlying economy in the San Francisco East Bay; Substantial completion of a large capital improvement program (CIP) with a mostly maintenance-oriented program during the five-year planning horizon; and Annual inflation-based rate increases that are scheduled to continue. Although we consider the system's rate structure above average
