Bangkok--12 Jun--Standard & Poor's
Standard & Poor's Ratings Services raised its long-term rating to 'AA' from 'A' on San Juan Water District, Calif.'s $27.215 million series 2003 revenue certificates of participation (COPs) (San Juan and Citrus Heights Project). At the same time, Standard & Poor's assigned its 'AA' underlying rating (SPUR) to the above referenced COPs. The outlook on all ratings is stable.
"Because the SPUR on the series 2003 revenue COPs is higher than the current long-term rating, as reflected by bond insurance provided by National Public Finance Guarantee Corp. (A/Developing), we raised our long-term rating on the district's series 2003 COPs," said Standard & Poor's credit analyst Paul Dyson.
The series 2003 COPs have an interest in installment payments made from net system revenues of both San Juan Water District and Citrus Heights Water District. The obligation of both San Juan and Citrus Heights to make installment payments from net system revenues is a several and not a joint obligation, and the certificates were issued in one series. As such, the rating on the certificates reflects the weaker of the two issuers (districts), although both districts are currently rated 'AA/Stable'.
San Juan Water District's share of the original series 2003 par amount is approximately 88%; Citrus Heights Water District is responsible for approximately 12%.
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:
Paul Dyson, San Francisco (1) 415-371-5079
Chris Morgan, San Francisco (1) 415-371-5032