Port Huron, MI Series 2024 Revenue Bonds Assigned 'A' Rating; Outlook Stable

AUSTIN (S&P Global Ratings) Oct. 17, 2024--S&P Global Ratings assigned its 'A' long-term rating to the city of Port Huron, Mich.'s $7.7 million series 2024 sewerage revenue bonds. The outlook is stable. "The rating reflects our view of the system's strong financial profile over the past three fiscal years, as evidenced by stable all-in debt service coverage and healthy reserves," said S&P Global Ratings credit analyst Mallie Lange. "We expect the system to continue to achieve strong financial metrics, as annual debt service will be declining as state revolving fund loans mature," she added. A first lien on the net revenues of the sewer system secures the bonds. We view bond provisions as credit neutral; these include a rate covenant

...October 17, 2024 AUSTIN (S&P Global Ratings) Oct. 17, 2024--S&P Global Ratings assigned its 'A' long-term rating to the city of Port Huron, Mich.'s $7.7 million series 2024 sewerage revenue bonds. The outlook is stable. "The rating reflects our view of the system's strong financial profile over the past three fiscal years, as evidenced by stable all-in debt service coverage and healthy reserves," said S&P Global Ratings credit analyst Mallie Lange. "We expect the system to continue to achieve strong financial metrics, as annual debt service will be declining as state revolving fund loans mature," she added. A first lien on the net revenues of the sewer system secures the bonds. We view bond provisions as credit neutral; these include a rate covenant set to 1.1x annual debt service and an additional bonds test set to 1.1x average annual debt service. Management intends to use the series 2024 bond proceeds to fund enhancements to the system, including rehabilitation of existing pump stations,...

Ratings Action