S&P Global Ratings has assigned its 'AA-' rating to Allegheny County Sanitary Authority (ALCOSAN), Pa.'s $330.7 million series 2024 sewer revenue bonds. At the same time, S&P Global Ratings affirmed its long-term rating of 'AA-' on the ALCOSAN's sewer revenue bonds outstanding. The outlook is stable. We consider bond provisions as credit neutral. 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 and available cash balances in excess of 25% of budgeted expenditures, with the second prong being 1.0x coverage based on net revenues alone. ALCOSAN's letter of credit with Duquesne Light Company, which currently has no draws, can have an aggregate principal amount not
