Bangkok--21 Oct--Standard & Poor's
Standard & Poor's Ratings Services raised it's rating to 'AAA' from 'AA+' on Burbank, Calif.'s outstanding water revenue bonds. At the same time, Standard & Poor's assigned its 'AAA' rating to Burbank, Calif.'s series tax-exempt 2010A and taxable series 2010B (Build America Bonds) water revenue bonds. The outlook on all ratings is stable.
The ratings reflect our view of the city's:
- Participation in the strong Burbank ('AAA' issuer credit rating) local economy, with its ties to the greater Los Angeles County MSA;
- Competitive rates despite recent moderate increases; and
- Strong coverage of maximum annual debt service.
"The rating action reflects our view of the city's trend of maintaining what we consider to be healthy finances with limited external capital needs," said Alda Mostofi.
The bonds are secured by net revenues of the water system. It is our understanding that the 2010 bonds will not have a debt service reserve account. According to the city, the proceeds of the series 2010A will refund the outstanding series 1998 bonds, and the proceeds of the series 2010B will be used to finance certain capital projects.
Burbank's water system, also known as Burbank Water & Power (BWP), serves a primarily residential customer base (84%) with 26,402 total customers within the city limits for fiscal 2010.
RELATED CRITERIA AND RESEARCH
USPF Criteria: Key Water And Sewer Utility Credit Ratio Ranges, Sept.15, 2008
USPF Criteria: Standard & Poor's Revises Criteria For Rating Water, Sewer, And Drainage Utility Revenue Bonds, Sept. 15, 2008
Complete ratings information is available to RatingsDirect subscribers on the Global Credit Portal at www.globalcreditportal.com and RatingsDirect subscribers at www.ratingsdirect.com. All ratings affected by this rating action can be found on Standard & Poor's public Web site at www.standardandpoors.com. Use the Ratings search box located in the left column.
Media Contact;
Ana Sandoval, New York (1) 212-438-5095,
[email protected]
Analyst Contacts:
Alda A Mostofi, San Francisco (1) 415-371-5061
Lisa Schroeer, Charlottesville (1) 434-220-0892