Standard&Poor's Ratings Services assigned its 'AA/A-1+' rating to Austin, Texas' $170.605 million water and wastewater system variable rate revenue refunding bonds series 2008, based on a direct-pay letter of credit (LOC) provided by Dexia Credit Local (AA/A-1+). The LOC will cover the bonds while they are in their initial weekly mode. The LOC will also provide coverage for all payment of principal and interest on the bonds for debt service as well as provide liquidity in the event of a failed remarketing. The LOC will provide 35 days of interest at a maximum rate of 12%. Should the bank purchase bonds following a failed remarketing, the bonds will be subject to repayment from the issuer over five years
