S&P Global Ratings revised the outlook to negative from stable and affirmed its ‘AA-‘ long-term rating on Pacifica , California's wastewater revenue bonds. The negative outlook reflects our view that there is at least a one-in-three chance that we could lower the rating within the next two years should the system fail to adopt rates sufficient to maintain peer-comparable coverage and rebuild its liquidity while still funding its ongoing capital needs. The bonds are secured by the net revenue of the city's wastewater system. Key bond provisions include a rate covenant set at 1.25x annual debt service and an additional bonds test set at 1.25x maximum annual debt service. For the purpose of the rate covenant, the city is permitted
