S&P Global Ratings lowered its long-term rating by two notches to 'BBB+' from 'A' on Monroe, La.'s series 2018 water revenue bonds. The outlook is negative. The downgrade and negative outlook reflect our view of the city's governance risk, including its risk management, culture, and oversight, as evidenced by reactive rate-setting practices and uncertainty surrounding future rate-setting. It also reflects the limited local economy and a decrease in coverage. Net revenues of the water system secure the bonds. We view the bond provisions as credit-neutral. Provisions include a rate covenant to maintain annual debt service coverage of 1.25x and an additional bonds test for net revenues to cover maximum annual debt service (MADS) on all debt, including proposed debt, at
