Standard&Poor's Ratings Services has assigned its 'AA' rating to San Antonio, Texas' series 2009 water system revenue and refunding bonds. The rating on the system's existing senior-lien bonds was raised in November 2008. The rating reflects: The broad, diversified, and growing service area that encompasses most of the city of San Antonio ('AAA' general obligation (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. Factors that continue to limit the rating include: Potential financial, political, and environmental challenges related to the development of additional water resources to supplement
