...S&P Global Ratings affirmed its '##' long-term rating on Houston Combined Utility Systems (CUS), Texas' working-lien debt. The outlook is stable. The rating reflects, in our opinion, the combination of an extremely strong enterprise risk profile and a very strong financial risk profile. However, given the city's significant pension issues, the committee discussed the potential for a lower rating or revised outlook, but overall decided the utility system's currently very strong liquidity position precluded a lowering of the rating or outlook revision. At the same time, we affirmed our 'A-1+' short-term rating on the utility system's commercial paper (CP) notes series B-4 and B-6, based on the city's transparency and financial reporting, as well as market access, which, in our view, is excellent. This would likely allow the city sufficient ability--even under a compressed timeline--to issue refunding bonds. Providing an additional hedge against extraordinary risk is the CUS' robust liquidity....
