...S&P Global Ratings assigned an '##+' long-term rating to the Milpitas Municipal Financing Authority, Calif.'s series 2019 water revenue bonds, issued on behalf of the city of Milpitas' water system. The rating reflects, in our opinion, the combination of an extremely strong enterprise risk profile and a very strong financial risk profile. The outlook is stable. The enterprise risk profile reflects our view of the water system's: + Wealthy, built-out service area that participates in the deep and diverse San Jose-Sunnyvale-Santa Clara metropolitan area economy; + Very low industry risk as a monopolistic service provider of an essential public utility; + Reliance on the San Francisco Public Utilities Commission (SFPUC) and the Santa Clara Valley Water District (SCVWD) for its entire potable water supply, exposing it to increasing wholesale water costs as both wholesalers implement significantly large capital programs; + Recently approved multiyear rate increases, following a three-year period...
