Standard&Poor's Ratings Services has affirmed its 'A' underlying rating (SPUR) on Pittsburgh Water and Sewer Authority, Penn.'s revenue bonds, series 2008C-1D (a subseries of series 2008C-1) variable rate demand obligation bonds. The 'A' long-term rating reflects our assessment of the authority's: Stable customer base with a significant commercial component; Good debt service coverage and good liquidity; Participation in the Pittsburgh metropolitan statistical area; and Adequate capacity to meet future water needs. In our view, offsetting factors include: Slightly above-average rates with additional rate increases needed to fund capital requirements related to a consent order with the Environmental Protection Agency (EPA) for the sewer system, the scope of which has not been determined; Highly leveraged system with backloaded debt
