S&P Global Ratings assigned its 'A' long-term rating to the city of Port Huron, Mich.'s $7.7 million series 2024 sewerage revenue bonds. The outlook is stable. A first lien on the net revenues of the sewer system secures the bonds. We view bond provisions as credit neutral; these include a rate covenant set to 1.1x annual debt service and an additional bonds test set to 1.1x average annual debt service. Management intends to use the series 2024 bond proceeds to fund enhancements to the system, including rehabilitation of existing pump stations, new collection and conveyance equipment in the primary and secondary clarifier tanks, and building improvements. Following this debt issuance, the sewer system will have about $37 million in long-term
