The rating on El Paso, Texas' CP notes reflects the water and sewer system's long-term creditworthiness ('AA' senior rating) and additional liquidity provided by a revolving credit agreement with Chase Bank of New York. The revolving credit agreement with Chase replaces a previous agreement with Bank of America. The 'AA' long-term rating reflects: A stable area economy, Continuous customer base growth, Strong debt service coverage, and Low rates providing future rate flexibility. A higher rating is precluded by a large, $484 million capital improvement program that is expected to be funded from approximately 50% debt issuance and 50% from cash-on-hand and other revenues. The system provides water and sewer service to 150,000 water customers and 143,000 sewer customers in and
