Summary: Austin, Texas; Water/Sewer

S&P Global Ratings assigned its 'AA' rating to Austin, Texas' $202.46 million series 2020C water and wastewater system revenue refunding bonds. The outlook is stable. The city will use bond proceeds to convert about $200 million of outstanding commercial paper notes to long-term debt, as well as to refund eligible maturities of the city's water and sewer system's--d.b.a. Austin Water Utility (AWU)--series 2010A revenue bonds for savings purposes. Prior to 2002, the electric, water, and sewer utilities operated as a single entity, with debt secured by the net revenues of all three systems. Since then, the electric system (Austin Energy, AA/Stable) and AWU have issued separate-lien debt, secured by electric-only and water and sewer-only net revenues, respectively, but subordinate to

...S&P Global Ratings assigned its '##' rating to Austin, Texas' $202.46 million series 2020C water and wastewater system revenue refunding bonds. The outlook is stable. The city will use bond proceeds to convert about $200 million of outstanding commercial paper notes to long-term debt, as well as to refund eligible maturities of the city's water and sewer system's--d.b.a. Austin Water Utility (AWU)--series 2010A revenue bonds for savings purposes. Prior to 2002, the electric, water, and sewer utilities operated as a single entity, with debt secured by the net revenues of all three systems. Since then, the electric system (Austin Energy, ##/Stable) and AWU have issued separate-lien debt, secured by electric-only and water and sewer-only net revenues, respectively, but subordinate to any remaining combined utility prior-lien debt. Both Austin Energy and AWU will continue to issue separate-lien revenue bonds when management chooses to retire existing notes with long-term debt. AWU has just...

Summary