Standard&Poor's Ratings Services raised its underlying rating (SPUR) on San Antonio, Texas' water system senior-lien bonds to 'AA' from 'AA-', its SPUR on San Antonio's water system junior-lien bonds to 'AA-' from 'A+', and its standard long-term rating on San Antonio's water system junior-lien bonds series 2004 to 'AA-' from 'A+'. The ratings also reflect: 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
