...S&P Global Ratings assigned its '##+' long-term rating to Seattle, Wash.'s series 2021 water system improvement and refunding revenue bonds. At the same time, S&P Global Ratings affirmed its '##+' rating on the city's existing water system parity debt. The outlook is stable. Proceeds will be used to fund $79 million of the water system's upcoming capital needs and to refund all or a portion of the series 2010B bonds for debt service savings. At year-end 2020, the system had $728.5 million of parity water system bonds outstanding as well as $24.8 million of subordinate state loans. The bonds are secured by a pledge of net revenues of the city's water system. A rate covenant requires the system to generate debt service coverage of 1.25x, though withdrawals from a rate stabilization fund can be included in this calculation. Additionally, securing all parity bonds is a reserve, funded at $75.1 million, with about 72% of this requirement funded with surety bonds....
