S&P Global Ratings assigned its 'AA' rating to Temple, Texas' $17.8 million series 2022 utility system revenue refunding bonds. At the same time, S&P Global Ratings affirmed its 'AA' rating on the utility's debt outstanding. The outlook is stable. The system's first-lien net water-and-sewer-system revenue pledge secures the bonds. We consider bond provisions adequate with a rate covenant equal to the greater of 1.25x average annual debt-service requirements, or 1.1x maximum annual debt service and an additional bonds test equal to 1.35x average annual parity debt service. Officials intend to use series 2022 bond proceeds to fund a portion of the system's overall capital-improvement program (CIP). Conservative budgeting and system growth allow the utility to have very strong, in our
