Bangkok--7 Jan--Standard & Poor's
Standard & Poor's Ratings Services assigned its 'A+' long-term rating to Los Angeles Unified School District, Calif.'s refunding certificates of participation (COP), series 2010A (multiple properties project). At the same time, we affirmed the 'A+' rating and underlying rating (SPUR) on the district's existing appropriation-backed lease revenue, or COP, debt and affirmed the 'AA-' rating and SPUR on the district's general obligation debt. Serving as security for the COPs are the lease payments that the district covenants to annually budget and appropriate for use and occupancy of the leased assets. The outlook is stable.
"The rating reflects our view of the district's long-term general creditworthiness and its covenant to budget and appropriate pledged lease payments," said Standard & Poor's credit analyst Gabriel Petek.
The rating on the series 2010A COPs also incorporates our opinion of abatement risk and the potential unavailability to the district, due to earthquake, of the leased assets that are the subjects of the COPs, both of which we view as minimal.
The stable outlook reflects our view that the district has demonstrated its commitment to maintaining appropriately sized fund balance reserves (consistent with its own policy) for its rating level despite sustained budgetary pressures.
RELATED RESEARCH
USPF Criteria: GO Debt, Oct. 12, 2006
USPF Criteria: Appropriation-Backed Obligations, June 13, 2007
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Media Contact:
Ana Sandoval, New York (1) 212-438-5095,
[email protected]
Analyst Contacts:
Gabriel Petek, CFA, San Francisco (1) 415-371-5042
David G Hitchcock, New York (1) 212-438-2022
Key Contacts:
Americas Media Relations: (1) 212-438-6667
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Americas Customer Service: (1) 212-438-7280
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