S&P Global Ratings assigned its 'AA' long-term rating to Portland, Ore.'s anticipated $435.5 million 2023 series A second-lien sewer system revenue bonds. At the same time, we affirmed our 'AA+' rating on the city's outstanding first-lien sewer system revenue bonds and our 'AA' rating on the city's outstanding second-lien sewer system revenue bonds. The outlook is stable. We view the bond provisions as credit neutral. A pledge of net revenues from the city's sewer system secures the bonds, but the second-lien bonds are subordinate to the first-lien bonds. Key bond provisions include a rate covenant set at 1.0x annual debt service on first- and second-lien bonds (excluding rate stabilization fund withdrawals); 1.2x annual debt service on first-lien bonds; and 1.1x
