CENTENNIAL (S&P Global Ratings) Jan. 22, 2021--S&P Global Ratings raised its long-term rating on Alameda-Contra Costa Transit District (AC Transit or the district), Calif.'s series 2019 refunding certificates of participation (COPs) to 'AA' from 'A+'. The outlook is negative. "The upgrade reflects our opinion of AC Transit's strong enterprise and financial risk profiles, as well as its significant tax support," said S&P Global Ratings credit analyst Scott Shad. Key credit strengths are: Relatively diverse revenue pledge; Historical debt service coverage (DSC) averaging 4.4x, per our calculations, from fiscal years 2017-2019 prior to the pandemic, tempered by historical volatility and near-term financial pressure due to the effects of COVID-19, with historic volatility somewhat mitigated by a significant step-down in annual debt
