S&P Global Ratings revised the outlook to negative from stable and affirmed its 'AA' rating on Kennebunk Sewer District (KSD), Maine's outstanding series 2017 and 2021 sewer system revenue bonds. We also assigned our 'SP-1+' short-term rating to the district's $11.5 million series 2025 sewer system bond anticipation notes (BANs). The outlook revision reflects a one-in-three chance that we could lower the rating in the next few years due to our expectation for narrowing operating margins following future debt plans, which will be balanced using reserves rather than increasing annual cash flow and operating revenue. However, during the two-year outlook period we expect KSD will maintain rates that meet debt service obligations and fund operating expenses, and cash reserves will
