S&P Global Ratings affirmed its 'A+' long-term rating on Woonsocket, R.I.'s wastewater revenue bonds outstanding. The outlook is stable. Net revenues of the city's sewer system secure the bonds. We view the bond provisions as credit neutral, including an unlimited rolling 1.25x rate covenant and unlimited projected rolling 1.25x additional bonds test. A debt service reserve, funded to the lesser of 125% average annual debt service, 10% of par, or maximum annual debt service (MADS), additionally secures the loan. Although Woonsocket has had financial difficulties in the past, it has not taken excess money away from the wastewater system to address its structural problems. We don't expect the city to use excess money from the sewer system to address any
