...S&P Global Ratings assigned its '##-' rating and stable outlook to Dayton, Ohio's roughly $15.87 million series 2020 sewer system revenue bonds and affirmed its '##-' rating, with a stable outlook, on the city's existing sewer system revenue debt. Dayton will use series 2020 bond proceeds to fund the construction and installation of replacement sanitary-sewer-interceptor lines and related improvements. Following this issuance, the city's sewer utility will have roughly $57.4 million of total debt service. We consider bond provisions credit relevant, including: + The principal-and-interest payments secured by net sewer system revenue; A flow of funds that requires funding of an operating reserve equal to 25% of operating expenses; + A debt-service-reserve funded with bond proceeds at the least of 10% of bond proceeds, maximum annual debt service, or 125% of average annual debt service; + A rate covenant that requires the city set rates that generate net revenue, adjusted by approved rate...
