S&P Global Ratings assigned its 'AA' long-term rating to the Orlando Utilities Commission (OUC), Fla.'s series 2023A utility system revenue bonds. At the same time, we affirmed our 'AA' long-term rating on OUC's existing parity debt, and our 'AA/A-1+' rating on specific variable rate obligations of the commission. The outlook is stable. The bonds are secured by a net revenue pledge of the combined utility, which includes electric and water services. The utility's electric system, which is the focus of our analysis, accounted for 85% of the combined system's net operating revenue in fiscal 2022. The combined utility had $1.5 billion in total debt outstanding as of Sept. 30, 2022. The 2023A bonds are being issued to fund capital improvements.
