Moody's rates Erie City Water, Pa., bonds A3

Moody's Investors Service said it assigned an A3 rating to the Erie City Water Authority, Pa.'s $50 million revenue bonds, series 2008.

At the same time, Moody's affirmed the A3 rating on about $125 million in outstanding parity revenue debt.

The series 2008 bonds will be issued as fixed-rate bonds and are secured by a pledge of water system net revenues. Sale of the bonds is expected on March 28.

Of the total proceeds, $40 million will be used to finance the authority's capital improvement program with the balance to be used to currently refund the series 1998 bonds and fund capitalized interest and the debt service reserve fund for the current bonds.

The series 2008 bonds are expected to be insured by FSA, whose current financial strength rating is Aaa with a stable outlook.

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