The 'AA' rating on Orlando Utilities Commission (OUC), Fla.'s water and electric revenue refunding bonds series 2003 and outstanding parity debt reflects the senior-lien pledge of the net revenues of the combined system and the general credit characteristics of the OUC. The OUC's general credit characteristics reflect: Competitive rates; A diverse power supply mix, with ownership interest in fossil steam, combustion turbine, and nuclear plants, as well as the use of purchased power contracts; A strong and stable service area economy; A proactive management team that has sought to position OUC to effectively compete in the evolving electric marketplace under a supportive regulatory environment; and Strong financial performance, with debt service coverage levels on senior- and subordinate-lien debt being consistently
