S&P Global Ratings revised the outlook to negative from stable and affirmed its 'AA+' issuer credit rating (ICR) on Alameda-Contra Costa Transit District (AC Transit or the district), Calif., and its 'AA+' long-term rating on the district's series 2019 refunding certificates of participation (COPs). The negative outlook reflects our view that, over the next two years, there is a one-in-three chance we could lower the rating if projected structural imbalance persists, weakening our view of financial metrics, specifically debt service coverage or debt-to-net revenues, absent mitigating measures. The COPs represent an interest in lease payments made by the district, as lessee, to the nonprofit AC Transit Financing Corp., as lessor, for the use and possession of the various leased assets,
