Standard&Poor's Ratings Services affirmed its 'AA-' underlying rating (SPUR), with a stable outlook, on Cedar Hill, Texas' waterworks and sewer revenue debt. The city's net system revenue pledge secures the bonds. The rating reflects our assessment of the city's: Inclusion in the diverse Dallas-Fort Worth metropolitan statistical area economy and, what we consider, strong income; Continued willingness to increase rates, as necessary, to provide good debt service coverage (DSC) and adequately fund obligations, including an additional water supply associated with Joe Pool Lake; and Low debt with limited additional capital needs. We believe the system's above-average rates and recent decline in operating income in fiscal 2010 that required a one-time transfer from the impact fee fund to maintain
