...S&P Global Ratings assigned its '###' rating to Orange County Utilities (OCU), Fla.'s $155 million in series 2020 water and wastewater utility revenue bonds. S&P Global Ratings also assigned its '###' underlying rating (SPUR) to OCU. The outlook is stable. The series 2020 bonds will be used both for expansion projects and system maintenance, as well as to pay for the cost of issuance. The senior-lien bonds are secured by a pledge of the net revenues of the water and wastewater systems. We view the bond provisions as credit neutral. Key provisions include a rate covenant of 1.2x annual debt service and an additional bonds test of 1.2x maximum annual debt service (MADS). The rating reflects the system's strong financial and operational management that we believe will support strong financial performance while addressing its capital needs. The enterprise risk profile is the result of the system's: + Large service area with moderate wealth and income indicators, + Affordable water rates representing...
