S&P Global Ratings lowered its long-term rating to 'AA' from 'AA+' on Oceanside , Calif.'s outstanding water bonds and Water Infrastructure Finance and Innovation Act (WIFIA) loan. The outlook is stable. The lowered rating reflects the decline in all-in coverage (AIC) in the most recent two fiscal years due to higher personnel, chemical, energy, and water purchase costs in addition to higher debt service associated with the full principal and interest payments starting in 2023 related to the WIFIA loan, with rate increases that have not resulted in historically robust coverage metrics. The bonds are payable from net revenues of the city's water system. Covenants include a 1.25x rate covenant and a 1.25x additional bonds test. For the purpose of
