...S&P Global Ratings assigned its '##' long-term rating to Nashville & Davidson County Metropolitan Government, Tenn.'s series 2021A electric system revenue bonds, issued for Nashville Electric Service (NES). At the same time, we affirmed our '##' long-term rating on the electric system's revenue debt outstanding. The outlook is stable. The electric system had $554 million in total revenue debt outstanding as of June 30, 2020. The electric system's first-lien net revenue pledge secures the bonds. Officials intend to use series 2021A bond proceeds to fund certain capital needs, including substation projects, technology upgrades, and planned engineering projects. Officials also plan to defease portions of the series 2008B, 2011A, and 2011B bonds. Following the defeasance, amendments to the bond resolution will be effective, including an amendment that if net revenues equal or exceed 1.5x, the funding of a debt service reserve is not required. Given the utility's robust liquidity position, we...
