Bangkok--21 Dec--Standard & Poor's
Standard and Poor's Ratings Services has raised its underlying rating (SPUR) to 'A+' from 'A' on Santa Fe Springs Public Financing Authority, Calif.'s series 2003A water revenue bonds and series 2005A water revenue refunding bonds. The outlook is stable.
"The rating reflects our opinion of the city's strong debt service coverage, primarily industrial and commercial economic base, strong wealth indicators and strong coverage without connection fees, and limited capital needs," said Standard & Poor's credit analyst Alda Mostofi.
The 2003 and 2005 bonds are secured by a first lien on net revenues from the district's water system and are on parity outstanding with the series 2003 bonds. The city has covenanted to maintain rates such that a minimum of 1.2x coverage exists on all parity debt, with an additional bonds test of 1.2x based on the most recent year's net revenues.
The stable outlook reflects our expectation that debt service coverage will remain strong, with no substantial change to the customer base. We expect the city's water enterprise to continue mitigating its rising costs by making the appropriate adjustments.
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Media Contact:
Ana Sandoval, New York (1) 212-438-5095,
[email protected]
Analyst Contacts:
Alda A Mostofi, San Francisco (1) 415-371-5061
Ian Carroll, San Francisco (1) 415-371-5060
Key Contacts:
Americas Media Relations: (1) 212-438-6667
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[email protected]
Americas Customer Service: (1) 212-438-7280
[email protected]