...July 24, 2024 NEW YORK (S&P Global Ratings) July 24, 2024--S&P Global Ratings raised its rating on Cleveland, Ohio's series 2016 WPC revenue bonds to '##-' from 'A+'. At the same time, we assigned our '##-' rating to the city's series 2024 water pollution control (WPC) revenue bonds. The outlook is stable. "The upgrade reflects a very affordable rate structure that, in our view, helps mitigate affordability challenges throughout the city," said S&P Global Ratings credit analyst Scott Garrigan. Starting with this baseline will help the city's WPC division execute on its capital plan in a way that does not erode margins or liquidity lower than what we consider consistent with the rating level. The bonds are secured by the net revenue of the WPC fund. We consider bond provisions neutral. Bond covenants include a rate covenant requiring 1.2x annual debt service coverage on revenue bonds and 1.0x coverage on all debt obligations, which include loans to the Ohio Water Development Authority, and...
