S&P Global Ratings assigned its 'AA' long-term rating to Temple, Texas' series 2021A utility system revenue bonds. Additionally, we affirmed our 'AA' rating on the utility's debt outstanding. The outlook is stable. The system's first-lien pledge of net revenues generated from water and sewer system operations secures the bonds. We believe bond provision are adequate, with a rate covenant equal to the greater of 1.25x the average annual debt service requirements or 1.10x the maximum annual debt service (MADS) and an additional bonds test equal to 1.35x average annual parity debt service. A springing debt service reserve fund will provide additional liquidity for the bonds. Series 2021A bond proceeds will be used to fund a portion of the system's overall
