Standard&Poor's Ratings Services assigned its 'AA' rating to Tacoma, Wash.'s regional water supply system revenue bonds, series 2013. At the same time, we affirmed our 'AA' rating on the city's outstanding regional water supply system revenue bonds. The outlook is stable. The rating reflects our view of the following credit strengths: Generally strong credit quality of the four participants in the system; Participants' covenants to collect water rates and charges sufficient to cover system obligations under a take-or-pay agreement; An agreement by Tacoma, the largest participant and operator of the system, to cover payment defaults by other system participants if the payments are needed for system debt service; and Liquidity available to the system in a two-month operating
