Standard & Poor's Ratings Services assigned its 'BBB-' rating, and stable outlook, to Newport Municipal Utility District (MUD), Texas' series 2005 waterworks and sewer system combination unlimited-tax and revenue bonds. The rating reflects the district's: High debt burden; Future capital needs; and Elevated property tax rate, which is needed to service debt. These weaknesses are offset, in part, by the district's: Healthy property tax base growth, coupled with access to the Houston MSA; and Adequate financial position. An unlimited ad valorem tax on all taxable property within the district secures the bonds. Management will use bond proceeds to finance the construction of an elevated storage tank and fund the expansion of the district's wastewater treatment plant. The 1,919-acre Newport MUD
