Standard&Poor's Ratings Services assigned its 'AAA' rating and stable outlook to the Trinity River Authority (TRA or the authority), Texas' central regional wastewater system series 2011 revenue refunding bonds. The rating reflects our opinion of the system's participant cities' general creditworthiness, which includes: Margins that generate appropriate coverage of all on-balance-sheet and off-balance-sheet obligations, including those to the authority; Strong liquidity; and Moderate retail service rates, coupled with a demonstrated willingness to adjust rates to ensure payment to TRA. A first-lien pledge on net revenues derived from payments by 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
