S&P Global Ratings assigned its 'A-1' short-term rating to San Francisco Public Utilities Commission's series A-4 (tax-exempt) and series A-4-T (taxable) Proposition E water commercial paper (CP) notes. The rating reflects the irrevocable direct-pay letter of credit (LOC) provided by PNC Bank N.A. The issuer can issue up to an aggregate $150 million of Proposition E tax-exempt series A-4 and taxable series A-4-T CP notes with a maturity up to 270 days. The aggregate CP note amount cannot exceed the LOC's stated amount and amounts due upon note maturity, funded in full, with amounts available under the LOC. When evaluating CP notes, we consider various risk factors. The LOC covers 270 days' interest accruals at a maximum rate of 12%
