The 'BBB' rating on Durand, Mich.'s sewage disposal system revenue bonds reflects the system's: Satisfactory debt service coverage (DSC), Weakened liquidity position, and High rates. Low debt levels with limited future capital needs due to good maintenance and adequate capacity are a mitigating strength. The city's system is small, but stable, and serves 1,500 customers in the 4,300-resident community. The city, which is between Flint, Mich. and Lansing, Mich. on Interstate 69 in Shiawassee County, serves as an affordably priced bedroom community to these employment centers, which experience demand for housing. The city has been growing through annexation, and the two most recent annexations totaled 50 acres; related development will be residential (about 50 new homes) and commercial properties. The
