Standard & Poor's Ratings Services placed its 'A' ratings on Bexar Metropolitan Water District (Bexar Met), Texas' waterworks system revenue debt on CreditWatch with negative implications based on the system's disclosure that its net revenues were insufficient in fiscal 2010 to provide the required 1.25x coverage of annual debt service covenanted in the district's bond documents. District officials estimate a debt service coverage of 1.18x based on unaudited results for fiscal 2010. In order to improve debt service coverage, the district's board approved a 7% rate increase on July 30, 2010, which is expected to improve coverage to 1.44x in fiscal 2011. Despite the recent actions taken by the governing board to restore debt service coverage, our CreditWatch action reflects...
Companies mentioned in this report are:
- Bexar Metro Wtr Dist
- Canyon Regl Wtr Auth
Action: On CreditWatch:Negative
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