DALLAS (Standard&Poor's) Nov. 5, 2008--Standard&Poor's Ratings Services raised its underlying rating (SPUR) on San Antonio, Texas' water system senior-lien bonds to 'AA' from 'AA-', its SPUR on San Antonio's water system junior-lien bonds to 'AA-' from 'A+', and its standard long-term rating on San Antonio's water system junior-lien bonds series 2004 to 'AA-' from 'A+'. The outlook on the ratings is stable. The upgrades reflect management's ability to maintain good coverage levels and strong liquidity, coupled with the development of a long-range capital and financial plan. The ratings also reflect the broad, diversified, and growing service area that encompasses most of the city of San Antonio ('AAA' general obligation (GO) rating); positive actions toward developing long-term
