Standard&Poor's Ratings Services assigned its 'AAA' long-term rating to the East Bay Municipal Utility District, Calif.'s series 2012A water system revenue refunding bonds. The outlook is negative. The rating reflects our view of the district's: Broad and mature customer base with strong income indicators; Enhanced water supply reliability, with the completion of a permanent connection to federal water supplies for use during drought conditions; Very strong liquidity position, which we believe partly mitigates the risk associated with a complex debt profile; Good-to-strong debt service coverage during the past three years; and Regular rate increases, which have increased revenues and helped offset decreasing water sales due to conservation. The bonds are being issued to refund $71.8 million of the
