Standard&Poor's Ratings Services assigned its 'AA-' long-term rating to San Antonio, Texas' water system (SAWS) junior-lien bonds series 2008 and 2008A, which are expected to be sold to the Texas Water Development Board. The rating reflects: The broad, diversified, and growing service area that encompasses most of the city of San Antonio ('AAA' general obligation (GO) rating); Positive actions toward developing long-term water availability; and Competitive water and sewer rates, providing flexible new long-term development of water resources. Factors that continue to limit the rating include: Potential financial, political, and environmental challenges related to the development of additional water resources to supplement the Edwards Aquifer groundwater supply, specifically the more than $1.5 billion capital improvement plan during the
