Summary: Allegheny County Sanitary Authority, Pennsylvania; Water/Sewer

S&P Global Ratings assigned its 'A+' long-term rating to Allegheny County Sanitary Authority (ALCOSAN), Pa.'s approximately $89.55 million series 2020 A sewer revenue bonds and approximately $59.12 series 2020 B sewer revenue bonds. At the same time, we affirmed our 'A+' rating on the ALCOSAN's outstanding sewer revenue bonds. The outlook is stable. The 2020 A and 2020 B series will be secured by the net revenues of the sewer system. The series 2020 A bonds proceeds will refund the authority's series 2010 bonds. The 2020 B bonds are being issued to fund a portion of the ALCOSAN capital improvement plan (CIP). We consider bond provisions adequate. Pursuant to the indenture, the authority's rate covenant is a two-prong test that

...S&P Global Ratings assigned its 'A+' long-term rating to Allegheny County Sanitary Authority (ALCOSAN), Pa.'s approximately $89.55 million series 2020 A sewer revenue bonds and approximately $59.12 series 2020 B sewer revenue bonds. At the same time, we affirmed our 'A+' rating on the ALCOSAN's outstanding sewer revenue bonds. The outlook is stable. The 2020 A and 2020 B series will be secured by the net revenues of the sewer system. The series 2020 A bonds proceeds will refund the authority's series 2010 bonds. The 2020 B bonds are being issued to fund a portion of the ALCOSAN capital improvement plan (CIP). We consider bond provisions adequate. Pursuant to the indenture, the authority's rate covenant is a two-prong test that requires 1.1x annual debt service coverage (DSC) based on net revenues plus available cash balances in excess of 25% of budgeted expenditures and 1.0x coverage based on net revenues alone. From a credit standpoint, S&P Global Ratings calculates coverage based on a...

Summary