S&P Global Ratings assigned its 'AA-' rating to Victoria, Texas' series 2016 utility system revenue refunding bonds. At the same time, we affirmed our 'AA-' rating on the city's existing utility system revenue bonds. The rating reflects our opinion of the system's very strong enterprise risk and financial risk profiles. The outlook is stable. The enterprise risk profile reflects our view of the system's: Very strong service area strengthened by its role as the regional hub of the Victoria metropolitan statistical area (MSA) economy, which we consider broad and diverse; Very low industry risk as a monopolistic service provider of an essential public utility; Record of rate increases to support operations and our expectation that the structure will remain affordable
