Standard&Poor's Ratings Services assigned its 'AA' long-term rating to the City of Tacoma, Wash.'s series 2010A and 2010B water system revenue and refunding bonds. At the same time, Standard&Poor's affirmed its 'AA' long-term and underlying rating (SPUR) on the city's outstanding parity debt. The rating reflects our view of the Tacoma water system's: Large service area of Pierce and southern King counties; Adequate city projected coverage through fiscal 2014; and Strong city projected liquidity through fiscal 2014. The foregoing credit strengths are tempered by a relatively large long-term capital plan with additional planned debt financing through at least 2013. The bonds are secured by net revenues of the city's water system (Tacoma Water). We understand that
