Standard&Poor's Ratings Services assigned its 'AA' rating to Redlands Financing Authority, Calif.'s series 2012A wastewater revenue refunding bonds, issued for the City of Redlands. At the same time, we affirmed our 'AA' long-term rating and underlying rating (SPUR) on the authority's 1999A wastewater revenue bonds. The outlook is stable. The ratings reflect our view of the wastewater system's: Primarily residential and very diverse customer base; Strong debt service coverage (DSC) that is no longer reliant on connection fees to maintain strong levels; Wastewater rates that are still very affordable after several years of roughly annual rate increases; Strong liquidity, with unrestricted cash equivalent to 593 days of operating expenses; and Participation in the Riverside-San Bernardino MSA, with income
