Standard&Poor's Ratings Services has assigned its 'AA-' rating to the City of San Antonio, Texas electric and gas systems $500 million junior-lien revenue bonds, taxable series 2010A and B. The rating reflects what we view as several strengths of San Antonio's electric and gas utility, known as CPS Energy, including: A strong, growing economy; Very competitive electricity rates; Economic, diverse fuel-generating capacity; Strong financial metrics; and Good management. We believe that maintaining the utility's strong financial risk profile, however, will depend on rate increases as needed and the ability to limit both operating and construction costs to keep rates in line with other Texas utilities. We understand that management will use bond proceeds to upgrade and expand electric
