...S&P Global Ratings revised its outlook to negative from stable and affirmed its '##+' rating on Seattle, Wash.'s existing drainage and wastewater system parity debt. At the same time, S&P Global Ratings assigned its '##+' long-term rating to the city's Water Infrastructure Finance and Innovation Act (WIFIA) loan. The revised outlook reflects our assessment of the credit risk posed by the drainage and wastewater system's sizable capital needs and affordability challenges. The potential effect to operating margins from the COVID-19 pandemic and the ensuing economic recession are is an additional stressors. We believe the service area has already been negatively affected by the current pandemic, which will affect utility demand as well as the overall tax base and could lead to financial performance that is inconsistent with the current rating. Nevertheless, the affirmation reflects our view that management's proactive strategic planning and good liquidity position will support continued sound...
