American States Water Company Confirms Change of Rating Outlook to Positive

SAN DIMAS, Calif.--(Business Wire)--
American States Water Company (NYSE:AWR) today confirmed that Standard & Poor`s
Ratings Services ("S&P") has improved its outlook on AWR and its main utility
subsidiary, Golden State Water Co. ("GSWC") to positive from stable. At the same
time, S&P affirmed the `A` corporate credit rating on AWR and GSWC.

According to S&P`s July 13, 2009 press release, "The outlook revision reflects
the company`s equity issuance, which raised about $34 million and reduced the
company`s need to fund upcoming capital expenditures with debt. The positive
outlook also reflects our expectation for greater and more stable earnings and
cash flow from enhanced cost-recovery mechanisms and continued regulatory
support, including higher depreciation rates that should improve key financial
metrics."

S&P`s corporate credit ratings range from AAA (highest rating possible) to D
(rating for default), reflecting S&P`s opinion of a company`s overall capacity
to meet its financial obligations. Credit ratings are not recommendations to
purchase, sell or hold a security and are subject to change or withdrawal at any
time by the rating agency.

Certain matters discussed in this news release with regard to the Company`s
expectations may be forward-looking statements that involve risks and
uncertainties. The assumptions and risk factors that could cause actual results
to differ materially, include those described in the Company`s Form 10-Q and
Form 10-K filed with the Securities and Exchange Commission.

American States Water Company is the parent of Golden State Water Company,
American States Utility Services, Inc. and Chaparral City Water Company. Through
its subsidiaries, AWR provides water service to 1 out of 37 Californians located
within 75 communities throughout 10 counties in Northern, Coastal and Southern
California (approximately 254,000 customers) and to approximately 13,000
customers in the city of Fountain Hills, Arizona, and a small portion of
Scottsdale, Arizona. The Company also distributes electricity to approximately
23,000 customers in the Big Bear recreational area of California. Through its
contracted services subsidiary, American States Utility Services, the Company
contracts with the U.S. government and private entities to provide various
services, including water marketing and operation and maintenance of water and
wastewater systems.

American States Water Company
Eva G. Tang
Senior Vice President, Chief Financial Officer,
Treasurer and Corporate Secretary
(909) 394-3600, extension 707

Copyright Business Wire 2009