Standard&Poor's Ratings Services affirmed its 'A+' underlying rating (SPUR), with a stable outlook, on Gulf Coast Water Authority, Texas' water system contract revenue refunding debt, issued for Texas City. The rating reflects our opinion of the Texas City utility system's: Underlying credit characteristics -- The system pays debt service on the authority's bonds as part of operating expenses; Good water supply and infrastructure status; and Strong finances, evidenced by good debt service coverage (DSC) and strong liquidity. We believe somewhat offsetting factors include, what we consider, the city's: Concentrated economy in the petrochemical industry; and Adequate, yet below-average, income. The authority's first-lien pledge on revenue secures the bonds, payable from revenue derived from Texas City's ownership and operation
