...Standard & Poor's Ratings Services affirmed its '###', with a stable outlook, on Trinity River Authority (TRA) Texas' Mountain Creek regional wastewater system debt. The rating reflects the credit quality of the system's customer cities, specifically Grand Prairie, which we view as the strong link among the participants in this TRA system despite its position as the smallest participant. Payments are based on the participants' sewer flows as a percent of total flows to the plant, although Grand Prairie also has a contractual minimum annual obligation. The contracts require unconditional payment by the participants to TRA. While there is no explicit language requiring a reallocation of expenses should a participant fail to pay, the authority can recalculate participant obligations at any time under a broad range of circumstances, effectively providing a step-up provision. The rating also reflects our opinion of the system's participant cities' general creditworthiness, which includes:...
