Standard&Poor's Ratings Services has assigned a 'AA-' rating to San Antonio, Texas' series 2010 water system junior lien revenue refunding bonds, secured by a junior lien pledge of net revenues of the water system. In addition, Standard&Poor's has affirmed the senior lien and junior lien ratings on the system's bonds outstanding. The ratings reflect our assessment of: The broad, diversified, and growing 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. In our opinion,
