Standard&Poor's Ratings Services affirmed its 'A-' rating on the Redlands Financing Authority, Calif.'s $18.910 million water revenue bonds, issued for the City of Redlands. The rating reflects the following credit strengths: Good debt service coverage (DSC) for fiscal 2004 at 2.85x when including connection fee revenue and 1.78x when excluding such revenue, up from 2.03x and 1.25x, respectively, in 2003; Strong liquidity at an estimated $12.0 million, or 394 days' cash, as of June 30, 2004; A declining debt burden at 31% debt to plant, down from 71% as recently as 2002; Diverse customer base and low rates resulting from low-cost surface and groundwater supplies; and Participation in the growing Riverside-San Bernardino MSA, with average or better income
