Standard&Poor's Ratings Services has assigned its 'AA' rating to the City of San Antonio, Texas $50.4 million electric and gas systems revenue refunding bonds, series 2011. At the same time, Standard&Poor's affirmed its 'AA' rating on the utility's senior-lien parity debt, its 'AA-' rating on junior-lien bonds, and its 'A-1+' commercial paper rating. The outlook is stable. We understand that management will use bond proceeds to refund bonds issued in 2002. As of fiscal year-end 2011 (Jan. 31), the electric and gas utility had $4.86 billion of debt outstanding. The rating reflects what we view as several strengths of San Antonio's electric and gas utility, known as CPS Energy, including the following factors: A strong, growing
