S&P Global Ratings assigned its ‘AA-‘ long-term rating to Dayton, Ohio’s 2026 sewer system revenue bonds, with a preliminary par amount of $23.93 million. At the same time, S&P Global Ratings affirmed its ‘AA-‘ long-term rating on the city’s previously issued sewer system revenue bonds. The outlook is stable. A senior lien on net revenue of the city's sewer system secures the 2026 bonds and parity obligations. Bond provisions, which we view as credit-neutral, include a rate covenant set at 1.25x annual debt service and an additional bond test of 125% aggregate annual debt service over the past two years. The indenture requires a debt service reserve fund, funded through bond proceeds, at the lessor of the three-prong test. The
