...S&P Global Ratings assigned its 'A-' long-term rating to the City of Port Huron, Mich.'s anticipated $4.975 million series 2021 water supply system revenue refunding bonds. Also, S&P Global Ratings affirmed its 'A-' long-term rating on the city's outstanding revenue bonds. The outlook is stable. The rating reflects our view of the utility's just adequate financial profile over the past three fiscal years, marked by thin all-in debt service coverage (DSC) and low level of reserves at a nominal level. While Port Huron adjusts water rates on an annual basis, historically, adjustments have only been sufficient enough to cover annual operating and debt service costs with no additional margins. We do recognize all-in DSC improved to 1.2x as of fiscal-year end June 30, 2021 (unaudited), due to rate increases, from 1.0x in fiscal 2018. We also note that all-in DSC is projected to improve to at least 1.6x by fiscal 2025. Operationally, the utility system is stable and has no treatment capacity constraints...
