The 'A' Standard&Poor's underlying rating (SPUR) on Trinity River Authority, Texas' revenue refunding bonds reflects the underlying credit quality of the water and sewer systems of the participating cities: Bedford, Euless ('A' water and sewer rating, stable outlook), Grapevine ('A' SPUR water and sewer rating, stable outlook), Colleyville ('A+' SPUR water and sewer rating, stable outlook), and North Richland Hills. These systems exhibit the following credit characteristics: Stable, predominantly residential service areas; Moderate water and sewer rates; Rate flexibility; and Adequate debt service coverage. A first lien on net revenues provided by contractual payments from the five member cities that make up operating and maintenance charges of the participating cities' water and sewer funds secures the bonds. Payments
