Standard&Poor's Ratings Services has assigned its 'AA' rating to San Antonio, Texas' series 2015 electric and gas systems senior-lien revenue bonds. At the same time, we assigned our 'AA-' rating to the city's junior-lien series 2015C and D variable-rate revenue bonds. The series 2015C and D bonds are each being sold initially in term mode and without a liquidity provider. In the event of a failed remarketing by the mandatory tender date, CPS Energy would be exposed to a soft put, whereby the interest rate would rise to a pre-defined penalty rate. Because, in our view, total variable-rate exposure is small--$592.6 million (including these bonds, but excluding commercial paper [CP] notes) out of more than $5 billion--relative to
