The 'AA-' rating on Temple, Texas' waterworks and sewer system revenue refunding bonds reflects the system's: Stable and diversified service area economy, Ample water supply, Consistently strong financial performance and resultant debt service coverage (DSC), Exceptionally strong system liquidity, Competitive utility rates with planned modest rate increases, and Limited future capital needs. Offsetting rating factors include the system's: Below-average income levels, and Significant fixed annual payments to Brazos River Authority. A pledge of the net operating revenues of the city's water and sewer system secures the bonds, the proceeds of which will be used to refund a portion of the city's series 1993 waterworks and sewer system revenue bonds outstanding. Temple, with a population of 55,610, is the Killeen-Temple MSA's
