The rating on Trinity River Authority, Texas' revenue bonds reflects a service area economy dominated by two governmental entities and, above-average water and sewer rates needed to cover a growing debt burden. Offsetting strengths include: * Historically good financial performance evidenced by 2.0 times (x) debt service coverage coupled with 300 days' cash, and * Adequate system capacity with minimal future capital needs. Huntsville is located 75 miles north of Houston and its economy is dependent upon the Texas Department of Criminal Justice (TDCJ) and Sam Houston University with 5,200 and 1,900 employees, respectively. While the TDCJ and university account for 40% of system consumption and revenues, the degree of concentration does not present credit concerns because these customers provide
