...S&P Global Ratings assigned its '###' rating to Charleston, S.C.'s series 2022 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 2022 bonds, which we consider equivalent to a net revenue pledge. We understand the 2022 bond proceeds will be used to fund certain capital improvements. 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 locally derived revenue base, which represents all system revenue, support the '###' rating. The systems have a predominantly locally derived revenue base....
