S&P Global Ratings assigned its 'AA' long-term rating to Ann Arbor, Mich.'s approximately $40 million series 2023 water supply system revenue bonds. S&P Global Ratings affirmed its 'AA' rating on Ann Arbor, Mich.'s outstanding water revenue debt. The outlook is stable. The series 2023 proceeds will be used to fund their capital improvement plan (CIP) for fiscal 2024 and 2025 at which time the city plans to issue more debt. The bonds are secured by the net revenues of the city's water system. We view the bond provisions as credit neutral, including a rate covenant set to sufficiency and an additional bonds test set at 1.25x annual debt service. The water system had about $27 million of total revenue debt
