S&P Global Ratings affirmed its 'AA' rating on Pasadena, Calif.'s outstanding electric revenue bonds. The outlook on the bonds is stable. Pasadena's strong service area is an important driver of the utility's credit quality. The pandemic is stressing the city's customer base, especially given that there is meaningful exposure to commercial industry, including entertainment and retail as well as the higher education sector, which is similarly stressed. However, we believe the utility has extremely strong management, robust liquidity, and significant rate flexibility, which partly offsets the near-term effect of consumption declines. Pasadena's water consumption declined by 4% in 2020 from both weather as well as COVID-related closures. Management has prepared projections for 2021 that indicate 5% declines for the first
