Standard&Poor's Ratings Services has assigned its 'AA' rating to San Antonio, Texas' series 2011 water system revenue refunding bonds. Additionally, Standard&Poor's affirmed its ratings on the system's senior- and junior-lien bonds outstanding. The ratings reflect our assessment of: The broad and diversified service area that encompasses most of the city of San Antonio ('AAA' GO rating), Management's ability to maintain good coverage levels and strong liquidity, coupled with the development of a long-range capital and financial plan, and Competitive water and sewer rates, providing flexibility regarding the development of new long-term water resources, coupled with the willingness to increase rates. Factors that continue to limit the rating include: Potential financial, political, and environmental challenges related to
