...CENTENNIAL (S&P Global Ratings) Dec. 1, 2017--S&P Global Ratings affirmed its 'A+' long-term rating on Alameda Contra Costa Transit District (AC Transit), Calif.'s series 2009 certificates of participation (COPs) and revised the outlook to negative from stable. Also, we affirmed our 'a+' stand-alone credit profile (SACP) and our 'A+' issuer credit rating (ICR) on AC Transit. The outlook for the long-term rating and ICR is negative. "The negative outlook reflects our view that although cash-flow debt service coverage (DSC) has historically been strong, accrual-basis DSC will be below 1.0x based on estimated fiscal 2017 financials, and may remain lower than historic levels in fiscal 2018," said S&P Global Ratings credit analyst Andrew Bredeson. We believe the pressure on DSC results from fluctuations in funding received from the state, a lack of fare increases between August 2011 and July 2017, and rising expenses. Despite the lower estimated and projected accrual-basis DSC, we believe cash-flow...
