Standard & Poor's Ratings Services assigned its 'AA' rating, and stable outlook, to El Paso, Texas' series 2005B water and sewer revenue refunding bonds. The rating reflects the system's: Stable area economy, Continuous customer base growth, Strong historical and projected debt service coverage (DSC), and Competitive rates despite recent increases. A large five-year, $651.5 million capital improvement program (CIP) --which city officials plan to fund from a combination of debt issuance, cash on hand, and other revenues -- precludes a higher rating. A pledge of net system revenues secures the bonds. Management will use bond proceeds to refund a portion of its water and sewer revenue bonds outstanding. The system provides water and sewer services to 163,222 water customers and...
Companies mentioned in this report are:
- El Paso
Action: New Rating
Action: Outlook: Stable
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