S&P Global Ratings assigned its 'AA-' long-term rating to the City of Springdale, Ark.'s approximately $43.1 million series 2022A water and sewer revenue bonds. The outlook is stable. As of Sept. 31, 2021, the city had $1.4 million of outstanding principle of the series 2006 revenue bonds. The series 2022A bond proceeds will fund system improvements. Net revenue of the water and sewer system secures the bonds. We view the bond provisions as credit neutral, including a rate covenant at 1.10x maximum annual debt service and additional bonds test of 1.10x of average annual debt service. The bonds will not fund a debt service reserve; however, we view this as credit neutral given the city's strong liquidity position. The rating
