S&P Global Ratings assigned its 'AAA' rating to Charlotte , North Carolina's series 2026 water and sewer system revenue bonds. At the same time, S&P Global Ratings affirmed its 'AAA' rating on the city's water and sewer system revenue debt, with $1.88 billion of revenue bonds outstanding as of the fiscal year ended June 30, 2025. The outlook is stable. A net pledge of the water and sewer system secures the bonds. We view bond provisions as credit neutral. The broad-based rate covenant test requires net revenue, including 50% of surplus fund balance, to provide 1.2x annual revenue bond debt service coverage (DSC) and 1x annual DSC of total debt service. However, operations alone (excluding surplus) are required to provide
