Pasadena Bonds Retain AA- rating

PASADENA, TX — The financial ratings agency Fitch reaffirmed its 'AA-' rating on some of the city of Pasadena's water and sewer revenue bonds.

The bonds were sold in 2008 and 2010 and are secured by a first lien on, and pledge of, the net revenues of the city's combined waterworks and sewer system. Fitch determined that the city's water and sewer system has financial stability with strong debt service coverage and plenty of cash on hand.

The agency did note that Pasadena lacks a formal capital improvement plan to replace aging infrastructure, but that the city plans to fund the repairs on a pay-go basis.

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