...Standard & Poor's Ratings Services assigned its '##' rating to Houston's series 2016A combined utility system (CUS) first-lien revenue bonds. At the same time, Standard & Poor's affirmed its ratings on all CUS-related debt issued by either the city or the Coastal Water Authority (CWA) on the city's behalf. The outlook, where applicable, is stable. The bonds are secured by net CUS revenues, but are subordinate to the lien securing the previous ordinance bonds. The system has roughly $5.9 billion in total outstanding first-lien revenue bonds and $120 million in commercial paper (CP) notes, as well as roughly $147 million of debt from its previous ordinance, which we rate '##+'. We have applied the primary criteria to determine the entity's general creditworthiness (ICR) and have applied this rating to the senior-lien issues, and also assigned a rating that is one notch lower to the subordinate-lien issues. The city also supports $86 million in contract revenue obligations to CWA. We understand...
