Los Angeles, CA's Series 2020 TRANs Assigned 'SP-1+' Rating

SAN FRANCISCO (S&P Global Ratings) June 30, 2020--S&P Global Ratings assigned its 'SP-1+' short-term rating to Los Angeles, Calif.'s series 2020 tax and revenue anticipation notes (TRANs). "The rating reflects our view of Los Angeles' general creditworthiness, very strong coverage of TRAN repayment set-asides and final maturity by projected available general fund cash balances, and history of relatively accurate cash flow projections," said S&P Global Ratings credit analyst Tim Tung. The city's current projections for fiscal 2021 include adjustments to reflect declines in certain revenue streams driven by the "safer at home" initiative implemented to reduce the transmission of the novel coronavirus and other adjustments to achieve budgetary balance. While there are substantial projected declines in revenue streams, such as

...June 30, 2020 SAN FRANCISCO (S&P Global Ratings) June 30, 2020--S&P Global Ratings assigned its 'SP-1+' short-term rating to Los Angeles, Calif.'s series 2020 tax and revenue anticipation notes (TRANs). "The rating reflects our view of Los Angeles' general creditworthiness, very strong coverage of TRAN repayment set-asides and final maturity by projected available general fund cash balances, and history of relatively accurate cash flow projections," said S&P Global Ratings credit analyst Tim Tung. The city's current projections for fiscal 2021 include adjustments to reflect declines in certain revenue streams driven by the "safer at home" initiative implemented to reduce the transmission of the novel coronavirus and other adjustments to achieve budgetary balance. While there are substantial projected declines in revenue streams, such as transient occupancy taxes and sales taxes, the city has a strong revenue base in property taxes that we anticipate will continue to grow based on stored...

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