The upgrade on Standard&Poor's underlying rating (SPUR) on Trinity River Authority, Texas' bonds, issued for Lancaster, Texas, is based on an improving economic base and improved financial performance. The rating reflects the strength of the contract between the Trinity River Authority and Lancaster. Under the terms of the contract, payments on these bonds are payable and secured by pledges of Lancaster's ad valorem taxes and surplus revenues of the city's combined Waterworks and Sanitary Sewer System. These bonds were issued to partially refund the authority's 1990 bonds for the Lancaster Water and Sewer project. Other credit factors include: Participation in the Dallas, Texas MSA economy; Good financial performance of the water and sewer system; and Moderate debt levels.
