S&P Global Ratings raised its underlying rating (SPUR) to'BBB+'from'BBB'on Atwater , California's wastewater revenue refunding bonds outstanding. The outlook is stable. The rating action reflects our view of the wastewater system’s operational stability and improving financial metrics, characterized by growing all-in debt service coverage (DSC) supported by prior incremental rate increases. Gross revenue of the city's wastewater system secures the bonds. We view the bond provisions as adequate and credit neutral because they require net wastewater system revenue to cover annual debt service requirements by 1.2x and meet the 1.2x additional bonds test. A standard debt service reserve fund is maintained for the previously issued bonds. The rating reflects our view of the wastewater system’s strengthening
