DALLAS (Standard&Poor's) June 26, 2008--Standard&Poor's Ratings Services raised its underlying rating (SPUR)on Temple, Texas' existing water and sewer debt to 'AA' from 'AA-' based on the city's historical solid coverage levels, willingness to increase rates, and ample water supply and treatment capacity. At the same time, Standard&Poor's assigned its 'AA' standard long-term rating to the city's $15.4 million series 2008 water and sewer revenue bonds. The outlook on the ratings is stable. The ratings reflect the system's stable and diversified service area economy, consistently strong financial performance and resultant debt service coverage (DSC), strong system liquidity, and competitive utility rates. The service area's below-average wealth and income levels mitigate these strengths. A junior-lien pledge
