The 'A+' rating on Portage, Mich.'s public utility revenue bonds series 2003 reflects the city's: Solid revenue bond debt service coverage and strong system liquidity, Rate flexibility due to its ability to raise rates without outside agency approval, Adequate legal provisions, and Strong service area economy. Offsetting factors include significant capital needs that, if debt-financed, will dilute coverage levels and continue to increase rates. The bonds are secured by net revenues of the water and sewer system. Bond counsel has advised that the procedure has been followed for the pledge to be perfected automatically by Michigan statute. Bond proceeds will be used for system improvements. The city serves about 14,300 water and sewer customers. The utility has adequate ground water
