San Juan Bautista, CA Enterprise Revenue Bond Rating Outlook Revised To Stable From Positive

Stocks and Financial Services Press Releases Friday May 19, 2017 09:09
SAN FRANCISCO--19 May--S&P Global Ratings

SAN FRANCISCO (S&P Global Ratings) May 18, 2017--S&P Global Ratings revised its outlook to stable from positive and affirmed its 'A-' underlying rating (SPUR) on San Juan Bautista, Calif.'s enterprise revenue bonds, issued on behalf of the city's water system and wastewater system. The rating reflects, in our opinion, a strong enterprise risk profile and a strong financial risk profile for each system.

"We revised our outlook to stable based on the city's additional medium-term borrowing for the water system to replace the metering system and based on a new annual repayment plan for the systems to repay loans from the city's general fund," said S&P Global Ratings credit analyst Tim Tung.

The enterprise risk profile reflects our view of the systems': Service area located in San Benito County that has an agriculture-based local economy;Very low industry risk as a monopolistic service provider of an essential public utility;Moderately high combined water and sewer rates; andStandard operational management practices and policies.

The financial risk profile reflects our view of the systems': Good to strong all-in coverage metrics that we anticipate will be sustainable;High leverage levels based on debt-to-capitalization ratios of 85% and 71% for the water system and the wastewater system, respectively;Manageable capital plan with no additional borrowing needs; andGood financial management practices and policies.

The stable outlook reflects our view of the systems' sustained good to strong all-in coverage metrics and limited additional capital needs.
During the two-year outlook period, we anticipate that the city will continue to adjust service rates regularly to maintain wide margins.

We could take a positive rating action if financial metrics continue to be strong and are sustainable while the city addresses any system capital needs and the local economy continues to develop and diversify. We could take a negative rating action if the systems significantly underperform to forecasts, there is a significant drawdown on liquidity for any reason, or if there are additional regulatory risks identified by the state board or further environmental actions that require significant additional capital needs.

Certain terms used in this report, particularly certain adjectives used to express our view on rating relevant factors, have specific meanings ascribed to them in our criteria, and should therefore be read in conjunction with such criteria.

Please see Ratings Criteria at for further information.
Complete ratings information is available to subscribers of RatingsDirect at and
All ratings affected by this rating action can be found on the S&P Global Ratings' public website at Use the Ratings search box located in the left column.

Latest Press Release

Geely Automobile Upgraded To #BBB-# On Sustained Business and Financial Im Outlook Stable

HONG KONG (S&P Global Ratings) Dec. 15, 2017--S&P Global Ratings raised the long-term corporate credit rating on Geely Automobile Holdings Ltd. (Geely Auto) to 'BBB-' from 'BB+'. The outlook is stable. Our upgrade on Geely Auto is driven by our...

Ratings On Toshiba Housing Loan Service Securitization Series 8 Transaction Affirmed At #AAA (sf)#

TOKYO (S&P Global Ratings) Dec. 15, 2017--S&P Global Ratings today said it has affirmed its 'AAA (sf)' ratings on the class A senior beneficiary certificates and asset-backed loan (ABL) issued under the Toshiba Housing Loan Service Securitization...

Pearl Holding III Ltd., Notes Assigned #B# Outlook Stable

HONG KONG (S&P Global Ratings) Dec. 15, 2017--S&P Global Ratings assigned its 'B' long-term corporate credit rating to Pearl Holding III Ltd., a Hong Kong headquartered precision-engineered plastic components manufacturer. The outlook is stable....

Thailand Futures Exchange announces TFEX Best Awards 2017

Thailand Futures Exchange PCL (TFEX), announced the winners of the eight categories of "TFEX Best Awards 2017", with KGI Securities (Thailand) pcl showing outstanding performance by sweeping three categories. TFEX Managing Director Rinjai Chakornpipat...

Photo Release: KTC joins hands with SE-ED Book Center in providing members access to quicker and more convenient privileges through the E - Coupon feature.

"KTC" or Krungthai Card Public Company Limited by Mr. Terapoj Chokeanantang, Senior Vice President - Credit Card Business, joins hands with renowned bookstore alliance, "SE-ED Book Center" by Mr. Niwat Vadhanasirimon, Marketing Communication & CRM...

Related Topics