Summary: Houston; CP

Standard&Poor's Ratings Services has assigned its 'A-1+' rating to Houston's series B-2 extended commercial paper notes program, established for the city's combined utility system (CUS). The CP rating reflects the general creditworthiness of the CUS, which has a senior- lien (previous ordinance) long-term rating of 'AA+'. The outlook on the long-term rating is stable. The notes are secured by a third-lien pledge on the net revenues of the city's retail waterworks and sanitary sewer system. We understand that the city would use its working lien, rated 'AA', to issue long-term debt to retire outstanding series B-2 notes. The system has a total of roughly $6 billion in outstanding debt, with less than $100 million remaining related to the

...Standard & Poor's Ratings Services has assigned its 'A-1+' rating to Houston's series B-2 extended commercial paper notes program, established for the city's combined utility system (CUS). The CP rating reflects the general creditworthiness of the CUS, which has a senior- lien (previous ordinance) long-term rating of '##+'. The outlook on the long-term rating is stable. The notes are secured by a third-lien pledge on the net revenues of the city's retail waterworks and sanitary sewer system. We understand that the city would use its working lien, rated '##', to issue long-term debt to retire outstanding series B-2 notes. The system has a total of roughly $6 billion in outstanding debt, with less than $100 million remaining related to the previous ordinance. The series B-2 CP notes are not currently supported by a revolving credit agreement with a liquidity provider. The program has a not-to-exceed $75 million authorization. Should the conditions be uneconomic for the city to retire outstanding...

Summary