...S&P Global Ratings assigned its '###-' rating to Atwater, Calif.'s series 2018A wastewater revenue refunding bonds. At the same time, S&P Global Ratings affirmed its '###-' underlying rating (SPUR) on the city's existing wastewater revenue debt and the Atwater Public Financing Authority's wastewater revenue debt, issued for the city. The outlook is stable. We view the wastewater system as having an adequate enterprise risk profile and a strong financial risk profile, which translates to an indicative rating of 'a-/###+' in our revenue debt criteria matrix. However, the city's general and sanitation funds have suffered ongoing deficits in recent years and have been characterized as going concerns in the most recent audited financial statements for fiscal 2016. Based on our criteria, we have applied a rating cap of '###-' to our rating on the wastewater system, reflecting the going concerns for these funds, which, in our view, continue to put pressure on wastewater fund and limit the rating...
