Standard&Poor's Ratings Services revised its outlook to negative from stable and affirmed its 'AAA' long-term rating and underlying rating (SPUR) on Milpitas, Calif.'s series 2006A certificates of participation (COPs), issued for the city's sewer system. The revised outlook reflects our view that the sewer system's financial profile will likely continue to experience pressure, due to the system's obligation to share in the cost of a very sizable capital improvement plan for the regional wastewater treatment plant. The ratings reflect our view of the sewer system's: Service area that participates fully in the deep and diverse San Jose-Sunnyvale-Santa Clara metropolitan area economy; Stable, primarily residential, and very diverse customer base; Affordable service rates, coupled with management's demonstrated willingness to
