Standard&Poor's Ratings Services has affirmed its 'A-1' short-term rating on Indianapolis, Ind.'s gas utility commercial paper (CP). The rating reflects our view of the gas utility system's general creditworthiness, the CP's subordination to second-lien gas utility distribution system bonds, and the gas system's adequate liquidity. The city has used the CP program's $50 million authorization. A $50 million line of credit with Bank of America N.A. provides liquidity for maturing CP, if necessary. Supplementing the system's liquidity are two $25 million lines of credit for working capital purposes. In our view, underlying rating factors related to the gas system include: A strong market position, as the system's sizable residential customer base and a diverse service area economy reflect;
