...S&P Global Ratings affirmed its '##' rating on San Antonio's series 2014B water system junior-lien revenue refunding bonds, which we understand will be converted to term mode from SIFMA index mode on Oct. 18, 2017, with a new mandatory tender date likely to be Nov. 1, 2022. No other credit-relevant features will change. The junior-lien (working) ordinance permits management to establish a debt service reserve fund (DSRF) on a series by series basis; no DSRF was established for the series 2014B bonds and it typically only establishes a DSRF for obligations placed with the Texas Water Development Board. Given the San Antonio Water System's (SAWS) rating and ample liquidity, we do not currently view this to affect the rating. Additionally, a failed remarketing is not an event of default. Instead, the soft put structure remains whereby SAWS would essentially pay an above-market, penalty interest rate. With about $2.5 billion in long-term debt across both liens, we do not view the $100 million...
