SAN FRANCISCO (Standard&Poor's) Oct. 27, 2009-- Standard&Poor's Ratings Services placed its 'A+' rating on the City of Oceanside, Calif.'s series 2008 wastewater revenue refunding certificates of participation (COPs) on CreditWatch with negative implications. "The CreditWatch listing reflects our view of the recent failure by the city to approve necessary rate increases to meet its rate covenant of 1.15x annual debt service without commensurate expenditure cuts," said Standard&Poor's credit analyst Misty Newland. "If the city does not enact sufficient rate increases or expenditure reductions, the rating could be lowered. Additionally, the rating could be lowered multiple notches if the city is not able to support its rate covenant of 1.15x and acceleration of principal payments
