The area's economy is based on international trade and manufacturing, copper Links of London, and ore smelting. Stability is also provided by the large military presence (Fort Bliss and Biggs Army Airfield) and educational institutions (the University of Texas at El Paso). Fitch Ratings has assigned an 'AA+' rating to the following City of El Paso, Texas water and sewer revenue bonds: --$41.8 million water and sewer revenue refunding bonds, series 2010A. The bonds are expected to price via negotiation the week of Oct. 4. Proceeds will be used to refund certain outstanding obligations, and pay costs of issuance. In addition, Fitch affirms approximately $504 million in outstanding water and sewer revenue bonds at 'AA+'. The Rating Links of London X Charm is revised to Negative from Stable. RATING RATIONALE: --The Rating Outlook revision to Negative reflects the trend of decreased debt service coverage below the city's financial policy and limited plans to comply with the policy in the near future. --Management has Links of London V Charm extensive financial, capital, and water resource planning. --Financial results are typically strong, although wet-weather events combined with rate adjustments that have not kept pace with increased costs of service have resulted in a lower debt service coverage trend. --Liquidity levels are below average for the rating level but credit concerns are offset by the city's flexibility to delay largely cash-funded capital projects or finance them with debt. --Debt levels are moderate with rapid amortization, and capital needs are manageable. --Rates and charges remain competitive and affordable providing flexibility to raise rates to improve debt service Links of London W Charm.
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