Standard&Poor's Ratings Services has assigned its 'AA' rating to the City of San Antonio, Texas' $655.4 million electric and gas systems revenue refunding bonds, series 2012. At the same time, Standard&Poor's affirmed its 'AA' rating on senior-lien parity debt, its 'AA-' rating on the junior-lien bonds, and the 'A-1+' commercial paper rating on the utility. The outlook is stable. As of fiscal year end 2012 (Jan. 31), the electric and gas utility had $4.8 billion of debt outstanding. A pledge of the electric and gas utilities' combined revenues secures the bonds. We understand that management will use bond proceeds to refund series 2005, 2005A, and 2006A bonds. The ratings reflect what we view as several strengths
