Summary: Charleston, South Carolina; Water/Sewer

S&P Global Ratings assigned its 'AAA' rating to Charleston, S.C.'s series 2021 waterworks and sewer system refunding revenue bonds. At the same time, we affirmed our 'AAA' long-term rating on the water and sewer parity revenue bonds. The outlook is stable. The city's gross revenue pledge of its waterworks and sewer systems (less operations and maintenance expenditures) secure the series 2021 bonds, which we consider to be equivalent to a net revenue pledge. We understand the 2021 bond proceeds will be used to refund existing debt (series 2006B bonds) for savings. There is a SWAP associated with the 2006B bonds which will be terminated, and the system will be required to pay termination fees. We view the bond provisions as

...S&P Global Ratings assigned its '###' rating to Charleston, S.C.'s series 2021 waterworks and sewer system refunding revenue bonds. At the same time, we affirmed our '###' long-term rating on the water and sewer parity revenue bonds. The outlook is stable. The city's gross revenue pledge of its waterworks and sewer systems (less operations and maintenance expenditures) secure the series 2021 bonds, which we consider to be equivalent to a net revenue pledge. We understand the 2021 bond proceeds will be used to refund existing debt (series 2006B bonds) for savings. There is a SWAP associated with the 2006B bonds which will be terminated, and the system will be required to pay termination fees. We view the bond provisions as credit neutral. Key bond provisions include a rate covenant set at 1.20x annual debt service. The systems may issue additional bonds by meeting an additional bonds test of 1.2x annual debt service. We believe the water and sewer systems' operating expense flexibility and...

Summary