Bangkok--25 Jul--Standard & Poor's
SAN FRANCISCO (Standard & Poor's) July 24, 2012--Standard & Poor's Ratings Services assigned its 'BBB-' long-term rating to the California Statewide Communities Development Authority, Calif.'s series 2012 limited obligation revenue bonds, issued on behalf of the City of Bakersfield Consolidated Reassessment District (RAD) No. 12-1. The outlook is stable.
"The rating reflects our view of the district's tax base concentration, slightly more than 1x coverage of annual debt service, and delinquencies that reached more than 6% in fiscal 2008," said Standard & Poor's credit analyst Alda Mostofi.
The proceeds of the bonds will be used to purchase as well as refund the city's Assessment District Nos. 96-1, 97-1, 98-1, 99-1, 99-2, 01-1, 01-2, 01-3, 02-1, 03-1, 03-2, and 03-3 and to create a debt service reserve fund for the series 2012 bonds, equal to 10% of par, that will be funded with cash.
The stable outlook reflects our view that the tax base will remain relatively stable for the foreseeable future.