Bangkok--2 Jun--Standard & Poor's
Standard & Poor's Ratings Services has raised its rating on South Feather Water and Power Agency, Calif.'s certificates of participation (COP; water fund) three notches to 'A' from 'BBB'. The outlook is stable.
"The upgrade reflects what we view as an improved cash position and a substantial decline in scheduled annual debt service that we expect should enable the agency to maintain good debt service coverage," said Standard & Poor's credit analyst Peter Murphy.
Other credit factors include our assessment of a small, limited local economy in Butte County with low wealth and income levels; and ample water supply with no capacity concerns.
The 2003 COP proceeds funded the construction of a 480-kilowatt solar photovoltaic electricity generation system at the agency's primary water treatment plant, which has reduced utility expenses.
The agency has about 7,200 customers, primarily residential, with a complement of small commercial customers. There is no concentration in its customer base.
The stable outlook reflects our expectation that the agency will demonstrate adequate debt service coverage in 2005 and thereafter, and will recover lost property taxes related to the state's property tax shift.
RELATED RESEARCH
"Standard & Poor's Revises Criteria For Rating Water, Sewer, And Drainage Utility Revenue Bonds," Sept. 15, 2008
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Media Contact:
Ana Sandoval, New York (1) 212-438-5095, [email protected]
Analyst Contacts:
Peter V Murphy, New York (1) 212-438-2065
Paul Dyson, San Francisco (1) 415-371-5079