S&P Global Ratings assigned its 'AA+' long-term rating to San Antonio, Texas' water system's (San Antonio Water System, or SAWS) approximately $214.2 million series 2025A fixed-rate junior-lien revenue bonds. The outlook is stable. Bond proceeds are being used to refund various debt outstanding for debt service savings. We consider both senior- and junior-lien bond provisions to be lenient, with a senior-lien rate covenant of 1.25x annual debt service, including amounts on deposit in any designated reserves or contingency funds, and a 1.00x rate covenant on its junior-lien obligations. While we consider the bond provisions to be permissive, we recognize that SAWS, by practice, produces coverage that is well above covenant minimums, further bolstered by its extremely strong liquidity position, which
