Standard&Poor's Ratings Services assigned its 'A+' rating to Portage, Mich.'s public utility revenue bonds, series 2005. In addition, Standard&Poor's has affirmed its 'A+' rating and 'A+' underlying rating (SPUR) on the city's outstanding debt. The 'A+' rating reflects the city's: Good system liquidity; Rate flexibility, due to its ability to raise rates without outside agency approval; Adequate legal provisions; and Strong service area economy. Significant capital needs that, if debt-financed, will dilute coverage levels and continue to increase rates tempers the city's public utilities rating. The bonds are secured by net revenues of the water and sewer system. Bond proceeds will be used for system improvements. The city serves about 14,900 water and sewer customers. The
