The 'A' rating on the Village of Holly, Mich.'s wastewater revenue bonds reflects the following strengths: Strong historical operating performance, with good projected coverage of debt service from existing operations; Ample liquidity; and The village's participation in Oakland and Genesee counties' economies. Offsetting weakness include: High sewer rates; Small customer base with moderate concentration; and The bond-funded capital plan, which relies solely on future connection charges and very high user rate revenue; The series 2004 revenue bonds are secured by net revenues of the wastewater system. The village's wastewater system serves residents of the 2.5-square-mile village (population 6,208) and a portion of Holly Township, with 2,417 mostly (98%) residential customers. Average daily flow for the past three fiscal years has
