NY -- Standard&Poor's CreditWire 1/16/98 -- Standard&Poor's today assigned its 'A-1'-plus rating to El Paso, Texas' $50 million water and sewer commercial paper notes series 1997A. The rating reflects the water and sewer system's long-term creditworthiness (double-'A' senior rating) and additional liquidity provided by a revolving credit agreement with Bank of America National Trust&Savings Association. The system's double-'A' rating reflects healthy customer base growth, a strong internal debt service coverage target, and rates that provide flexibility for increases necessitated by a large capital program. A higher rating is precluded by a large, $225 million capital improvement program that is expected to be funded 55% from approximately debt and 45% from cash-on-hand and other revenues.
