S&P Global Ratings lowered its long-term rating on Kennebunk Sewer District (KSD), Maine's series 2017 and 2021 sewer system revenue bonds outstanding to ‘AA-’ from ‘AA’. At the same time, we assigned our'SP-1+'short-term rating to the district's $19.5 million series 2026 sewer system revenue bond anticipation notes (BANs). We also affirmed our ‘SP-1+’ short-term rating on the district’s series 2025 BANs, though we understand the bonds will be taken out with the 2026 BANs. The outlook is negative. The downgrade reflects our view of the district’s changing credit profile that includes declining coverage metrics even with the use of rate stabilization funds, and which we do not view as supportive of the higher rating. The BANs are secured
