Standard&Poor's Ratings Services raised its underlying rating (SPUR) to 'A' from 'A-' on Puyallup, Wash.'s outstanding water and sewer revenue bonds. The rating action reflects the city waterworks utility's track record of good financial performance and the city's adoption of a minimum operating reserves policy and enhanced rate management practices. Credit strengths of the utility include its: Track record of maintaining good-to-strong unrestricted liquidity, reinforced by a minimum operating reserve policy; Continued strong debt service coverage, supported by a practice of annual rate adjustments; Diverse customer base in a growing local economy that participates in the greater Seattle-Tacoma region; and Ample water and sewer system capacity. Factors that constrain further upward movement include its: High rates on a
