S&P Global Ratings has assigned its 'AA-' rating to Allegheny County Sanitary Authority (ALCOSAN), Pa.'s $434.4 million series 2025 sewer revenue bonds. At the same time, S&P Global Ratings affirmed its 'AA-' long-term rating on ALCOSAN's sewer revenue bonds outstanding. The outlook is stable. We consider bond provisions as credit neutral but permissive. Pursuant to the indenture, the authority's rate covenant is a two-prong test that requires 1.1x annual debt service coverage (DSC) based on net revenues but also allows for consideration of available cash balances in excess of 25% of budgeted expenditures to be used to support DSC of 1.1x once combined with a required 1.0x coverage based on net revenues alone. ALCOSAN's letter of credit with PNC Bank,
