S&P Global Ratings assigned its ‘AA-‘ rating to Allegheny County Sanitary Authority (ALCOSAN), Pennsylvania’s $385.5 million series 2026 sewer revenue bonds. At the same time, we affirmed our ‘AA-‘ rating on the authority’s existing sewer revenue bonds. 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. We expect a debt service reserve fund will be funded with
