The rating on Portage, Mich.'s bonds reflects the following strengths: A strong service area economy, Moderate rates, Solid revenue bond debt service coverage, and Healthy cash balances. Factors that preclude a higher rating include: The expectation for reduced coverage with the issuance of the bonds, and Significant debt needs. The bonds are secured by the net revenue of the water and sewer system. Underlying the rating is a strong service area economy (Portage's GO rating is 'AA'). Anchored by Pharmacia-Upjohn, a large pharmaceutical manufacturer that employs 4,200, the city is home to a variety of manufacturing establishments and a regional mall. Annual unemployment remains low at 1.6%. Wealth levels are about 30% above the nation's average. The city serves about
