Standard&Poor's Ratings Services assigned its 'AA' underlying (SPUR) to Puyallup, Wash.'s outstanding water and sewer revenue bonds, series 1998, 1999 and 2004. The net revenues of the waterworks utility, which includes the city's water, sewer, storm and surface water, and solid waste services, secure the bonds. In our opinion, the combined utility's key credit strengths are its: Primarily residential suburban economic base located within the Seattle-Tacoma region; Track record of maintaining good-to-strong unrestricted liquidity, reinforced by a minimum operating reserve policy; Pattern of strong debt service coverage, supported by a practice of annual rate adjustments; and Ample water and sewer system capacity. The utility serves a primarily residential community that is mostly coterminous with the city and located
