Standard&Poor's Ratings Services affirmed its 'A+' rating on Indianapolis Local Public Improvement Bond Bank, Ind.'s waterworks debt, issued for Indianapolis. The rating reflects our assessment of: A deep, diverse, and moderately growing service area within the Indianapolis economic base; Good system capacity; and Projected improved annual debt service coverage with liquidity levels that are expected to be rebuilt with bond proceeds. These strengths are lessened by the utility's: Highly leveraged nature with additional debt plans; and New system ownership structure, which, while having experience with other utility sectors, does not have a history of operating a waterworks utility. Net revenues of the waterworks system, on a senior-lien basis, secure the bonds. CEG is expected to acquire the waterworks
