S&P Global Ratings affirmed its 'AA+' long-term rating on Cleveland, Ohio's existing water system revenue bonds. At the same time, we affirmed our 'AA' long-term rating on the city's second-lien water revenue refunding bonds. The outlook is stable. The system's first-lien net revenue pledge and pledged funds secure the first-lien bonds, while its second-lien net revenue pledge secures the series 2017B bonds. We consider bond provisions credit neutral. Bond provisions on the senior-lien debt include a 1.25x rate covenant, an additional bonds test (ABT), and a closed flow of funds. For the second-lien debt, bond provisions are more permissive, in our view, with a rate covenant showing net revenue covering the greater of 1.25x senior-lien debt or 1x senior bond
