The 'AA' rating on Trinity River Authority (TRA), Texas' Denton Creek Regional Wastewater Treatment System revenue improvement and refunding bonds reflects the general creditworthiness and financial stability of the member cities, as well as their strong service area economies and utility system operations. The water and sewer systems of these cities collectively exhibit: A revenue stream that provides adequate debt service coverage (DSC), Low treatment rates, and Sufficient treatment capacity. A first lien pledge on the net revenues derived from payments by the contract participants to the authority secures the bonds. Payments are based on the participants' sewer flows as a percentage of total flows to the plant. The contracts require unconditional payment of debt service regardless of treatment services.
