The 'A+' rating on Portland, Ore.'s second-lien sewer system revenue bonds and affirmed 'A+' rating on the city's outstanding first-lien sewer system revenue bonds reflects: A very large system, which services the Portland-Vancouver economy; A strong, professional management team with solid planning standards to ensure financial flexibility in the face of a sizable capital program; and Sustained strong historical coverage of annual debt service and strong projected coverage of second lien and planned future debt service. Offsetting factors include a large but manageable $576.6 million, five-year capital improvement plan (CIP) and high sewer rates of $39.15 per month, which are projected to continue steady annual increases over the medium term. The second-lien bonds are secured by a junior lien on
