As part of ongoing surveillance efforts, Fitch Ratings has upgraded the rating on $222 million in City of Santa Clara, Calif., electric utility revenue bonds to 'A+' from 'A'.

Fitch changed the bonds' rating outlook to "stable" from "positive."

In explaining the change, Fitch said, "The upgrade of Santa Clara's electric system, trademarked Silicon Valley Power (SVP), is supported by recent rate increases, significant improvement in operating cash flow, higher debt service coverage and no withdrawals from the cost reduction fund (CRF) expected in fiscal 2012 and beyond."

The rating agency also explained, "The 'A+' rating is based on the system's diverse power supply, sufficient resource capacity and a renewable portfolio accounting for 32% of the energy mix, well in excess of the state mandate of 20% by 2010."