S&P Global Ratings raised its underlying rating to 'BB-' from 'B+' on DeKalb-Jackson Cooperative District (DKJCD), Ala.'s series 2016 bonds. The outlook is stable. The upgrade primarily reflects the revenue support derived from DeKalb-Jackson Water and Sewer District's (DJWSD's) subordinate-lien water revenue pledge. The stable outlook primarily reflects stabilization in the combined water and natural gas systems' financial performance despite continued operating subsidies provided to the gas system. The DKJCD bonds are secured by net system revenue of Upper Sand Mountain Gas District's (USMGD) natural gas distribution system and a subordinate pledge of DJWSD's net water system revenue. Both the rate covenant and additional bonds tests are based on generating net revenue from the combined gas and water operations totaling
