CHICAGO (Standard&Poor's) March 31, 2011--Standard&Poor's Rating Services lowered its rating to 'A+' from 'AA-'on Indianapolis Local Public Improvement Bond Bank, Ind.'s waterworks debt, issued for Indianapolis. The outlook is stable. At the same time, we assigned our 'A+' rating and stable outlook to the Bond Bank's 2011E waterworks revenue bonds, issued for the Indianapolis Department of Waterworks. "The downgrade reflects the waterworks department's very low liquidity position, to the extent that the utility currently relies on non-utility funds to help manage cash flow, despite its adequate debt service coverage," said Standard&Poor's credit analyst Corey Friedman. The 'A+' ratings reflect our view of the utility's: Deep, diverse, and moderately growing service area; Good system capacity;
