...S&P Global Ratings assigned its '##-' long-term rating to the city of Victoria, Texas' approximately $6 million series 2022 utility system revenue bonds. Additionally, we affirmed our '##-' rating on the utility's debt outstanding. The outlook is stable. Bond proceeds will be used to fund certain capital improvements to the system. Net revenues of water and sewer fund are pledged by the city to the payment of the bonds. Bond provisions include a rate covenant of either 1.25x average annual debt service or 1.10x maximum annual debt service (MADS) of all bonds outstanding after issuance of additional new-lien bonds. In addition, additional bond issuance must equate to no greater than the sum of 1.25x the average annual debt service requirement or 1.10x average annual debt service requirement of subordinate-lien obligations. Finally, a reserve fund for the series 2022 bonds will be established as additional security if net revenues in any fiscal year are less than 1.35x average annual debt...
