...S&P Global Ratings assigned its '###' rating to Cincinnati's approximately $65 million series 2021A water system revenue bonds and nearly $47.6 million 2021B water system refunding revenue bonds. At the same time, S&P Global Ratings affirmed its '###' rating on the city's existing water system debt. The outlook is stable. The series 2021A bonds are being issued to fund water system improvements and the series 2021B bonds are being issued for debt service savings. We consider the bond provisions to be adequate. The bonds are secured by net revenues of the water system. Key bond provisions include rate covenant and additional bonds tests set at 1.15x senior-lien debt service and 1.00x total debt service (including subordinate obligations), however, city policy establishes a minimum of 1.5x senior debt service; and current projections indicate that coverage will remain well above these minimums. The bonds also have a reserve, which is funded at the lesser of the typical three pronged test...
