Standard & Poor's Ratings Services assigned its 'A' rating, with a stable outlook, to the city of Aberdeen, S.D.'s 2012A water revenue and 2012B taxable water revenue refunding bonds. Our rating reflects our assessment of the utility's: Ample water capacity with a good operating profile; Strong liquidity levels, despite a recent decrease due to one-time capital needs; and Moderate debt profile with no additional debt plans. Offsetting these strengths, in our view, are the utility's adequate income levels with fluctuating annual debt service coverage. Net revenues of the water system secure the debt. Bond proceeds will refund two state revolving fund loans for interest cost savings. The city will maintain a debt service reserve at the standard three-prong test. Aberdeen...
Companies mentioned in this report are: Aberdeen
Action: New Rating
Action: Outlook: Stable
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