S&P Global Ratings lowered its rating to'BBB+'from'A-'on South Elizabethton Utility District of Carter County , Tennessee's outstanding waterworks revenue refunding and improvement bonds. The outlook is stable. The downgrade reflects the recent declines in the district's debt service coverage, which fell below 1.0x in fiscal 2025 and are projected to remain weak through fiscal 2027 before the expectation of modest improvement resulting from receipts from various grants coupled with potential future rate increases to address the rehabilitation of an aging system. Net revenue of the water utility system secure the bonds. Legal provisions feature an additional bonds test that requires net system revenue to provide 1.2x maximum annual debt service (MADS) coverage. A rate covenant requires
