Standard&Poor's Ratings Services affirmed its 'A-' rating on the City of Wamego, Kan.'s electric system revenue bonds, series 2012. The outlook is stable. The rating reflects our view of the following credit weaknesses: A small service area and budget that constrain financial flexibility; Financial statements that are cash based and do not conform with generally accepted accounting principles; Modest customer concentration, with the top 10 electric system customers accounting for one-third of system revenues; and Weak bond provisions, demonstrated by the lack of a debt service reserve fund. The rating also reflects certain credit strengths: Strong demographics, as signified by city income levels that are above average, and county unemployment levels that trend below the U.S. average; The
