S&P Global Ratings assigned its 'AA+' rating to San Antonio, Texas' water system's, known as San Antonio Water System (SAWS), approximately $89.9 million series 2025B fixed-rate senior-lien revenue refunding bonds. The outlook is stable. Officials intend to use series 2025B bond proceeds to refund various debt outstanding for debt-service savings. We consider senior- and junior-lien bond provisions 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 1x rate covenant on its junior-lien obligations. While we consider bond provisions permissive, we recognize that SAWS, by practice, produces coverage that is well above covenant minimums, further bolstered by its extremely strong liquidity, which was $702 million as
