Standard & Poor's Ratings Services assigned its 'A-' rating to the Village of Holly, Mich.'s water system revenue bonds, series 2006, reflecting the following strengths: The village's participation in the Oakland and Genesee county economies; Large, recently approved, water use and base charge rate increases; and Adequate historical operating performance and liquidity. Offsetting weakness include: A small system and customer base; Very high customer concentration; and Debt service projections that require future connection charges and very large base rate increases, which have not yet been approved, in order to generate adequate coverage. The series 2006 revenue bonds are secured by net revenues of the water system. The village's water system serves residents of the 2.5-square-mile village (population: 6,240) and a
