Standard&Poor's Ratings Services assigned its 'AA' long-term rating to Austin, Texas' series 2010A water and wastewater system revenue refunding bonds and taxable series 2010B refunding bonds, which we understand the city intends to issue as direct subsidy Build America Bonds. At the same time, Standard&Poor's affirmed its 'AA' long-term rating and underlying rating (SPUR) on the systems' parity separate-lien debt. The outlook is stable. The ratings reflect our opinion of the system's, doing business as Austin Water Utility, general creditworthiness, including its: Service area, which is not concentrated in revenues derived from its principal customers and continues to exhibit steady customer growth and very solid overall wealth and income levels; Water supply agreement reached with Lower
