...S&P Global Ratings raised its underlying rating (SPUR) to '###' from '###-' on Atwater, Calif.'s wastewater revenue refunding bonds outstanding. The outlook is stable. The upgrade reflects the removal of a rating cap on the wastewater system based on management's risk-mitigation efforts to stabilize general fund and sanitation operations that limit the potential for extraordinary support or intervention from the related government. We view the city's improved governance under environmental, social, and governance (ESG) factors as driving the rating action. Furthermore, with positive fund balances within the general fund and enterprise operations, auditors removed the going concern opinion from the city's recent audits. In response to its fiscal emergency declaration in 2012, Atwater instituted certain revenue-raising measures to relieve the structural imbalances in the general, water, and sanitation funds. It is our opinion that the city's revenue-raising enhancements, including an additional...
