Summary: San Francisco Public Utilities Commission; Water/Sewer

S&P Global Ratings assigned its 'AA-' long-term rating to San Francisco Public Utilities Commission (SFPUC), Calif.'s anticipated $787.0 million series 2022ABCD taxable water revenue refunding bonds. At the same time, we affirmed our 'AA-' long-term rating and underlying rating (SPUR) on SFPUC's existing water revenue bonds. The outlook is stable. Proceeds from the series 2022 issuance will be used to advance refund all or a portion of the outstanding series 2015A, 2016A, 2017A, 2017B, 2017C, and 2017D water revenue bonds with debt service savings shifted into fiscal 2023 for near-term debt service relief. We understand the SFPUC has a 3% net present value savings threshold, therefore, the size of the transaction may be significantly downsized based on market conditions. As

...S&P Global Ratings assigned its '##-' long-term rating to San Francisco Public Utilities Commission (SFPUC), Calif.'s anticipated $787.0 million series 2022ABCD taxable water revenue refunding bonds. At the same time, we affirmed our '##-' long-term rating and underlying rating (SPUR) on SFPUC's existing water revenue bonds. The outlook is stable. Proceeds from the series 2022 issuance will be used to advance refund all or a portion of the outstanding series 2015A, 2016A, 2017A, 2017B, 2017C, and 2017D water revenue bonds with debt service savings shifted into fiscal 2023 for near-term debt service relief. We understand the SFPUC has a 3% net present value savings threshold, therefore, the size of the transaction may be significantly downsized based on market conditions. As of April 1, 2022, SFPUC had approximately $4.8 billion in aggregate principal of water revenue bonds and approximately $76.1 million principal amount of commercial paper (CP) notes outstanding. Water revenue bond provisions...

Summary