The ratings on Trinity River Authority, Texas' bonds reflect the contractual ties between the Trinity River Authority and the five participating cities-Bedford, Euless, Colleyville, Grapevine,and North Richland Hills. An offsetting factor is the system's high wholesale rate. The bonds are secured by contract payments that constitute operating and maintenance charges of the participating cities' water and sewer funds. Payments are based on participants proportional water consumption and contracts have no step-up provisions. The participants -- Bedford, Euless, Colleyville, Grapevine, and North Richland Hills -- purchase most of their water from Trinity River Authority. Participants Euless (24% of purchases; `A') and Colleyville (15%) have exhibited historically strong financial performance, characterized by healthy revenue debt service and adequate coverage of combined revenue
