S&P Global Ratings assigned its 'BBB+' long-term rating to the city of Fort Morgan , Colorado's anticipated $50.3 million series 2026 wastewater revenue bonds. The outlook is stable. The bonds are secured by a pledge of net revenue of the city's wastewater system. We view bond provisions as credit neutral, with a rate covenant of 1.10x annual debt service and an additional bonds test of 1.10x maximum annual debt service (MADS). Bond proceeds will be used to finance upgrades at the city's wastewater treatment facility to ensure compliance with the state's updated effluent requirements for phosphorus and nitrogen. Currently, the plant does not comply with updated regulations, and the city is required to make the appropriate improvements by Dec. 31,
