Standard&Poor's assigned its 'AA+' rating to Seattle, Wash.'s $122 million series 2010 water system revenue bonds. At the same time, we affirmed the 'AA+' rating on Seattle's existing parity debt. Seattle's water revenue bonds have the following credit strengths: Seattle's role as regional water supplier; The service area's deep and diverse economic base (Seattle and King County's general obligation bonds are rated 'AAA'); Excellent financial management, with well-thought-out debt service coverage (DSC) ratio targets; Managerial and political willingness to implement an appropriate rate structure to ensure sufficient funding for capital and operating needs; and Access to the city's consolidated cash pool for financial liquidity purposes. A trend of declining consumption, as well as the need for capital spending
