Standard&Poor's Ratings Services assigned its 'AA' rating to Tacoma, Wash.'s regional water supply system revenue bonds, series 2010A and B (direct-pay Build America Bonds). We also affirmed our 'AA' rating on the city's series 2002 regional water supply system revenue bonds. The outlook is stable. The rating reflects our opinion of: Covenants by four financing participants, including Tacoma, to collect water rates and charges sufficient to make defined-share contributions to support operating expenses; An agreement by Tacoma, the largest participant, to cover potential payment defaults by either of two other financing participants of the regional water supply system; and Available liquidity in the form of a currently cash-funded covenanted reserve account and Tacoma's informal cash minimum target of
