The 'A-' rating on Puyallup, Wash.'s water and sewer revenue bonds reflects the following credit strengths: Good financial performance, with increased cash reserves totaling $6.0 million, or 319 days of operating expenditures, as of 2002, up from $2.2 million, or 158 days, in 1998; A stable and diverse local economy characterized by above-average wealth levels with access to the greater Seattle-Tacoma region; Ample water and sewer system capacity; and, A diverse customer base. These strengths are offset by: High rates, with an additional rate increase likely in early 2004; A decline in debt service coverage in 2002 versus historically higher levels; Some dependence on connection fees to meet debt service payments; and Growth pressures reflected in the utility's capital plan,
