S&P Global Ratings raised its underlying rating (SPUR) to 'AA-' from 'A' on the Successor Agency to Watsonville Redevelopment Agency , Calif.'s series 2016 tax allocation refunding bonds (TARBs) outstanding. The outlook is stable. The rating action reflects our view of the project area's ongoing growth in incremental assessed value (AV) combined with a rapid decline in debt service, resulting in significantly stronger maximum annual debt service (MADS) coverage that we expect will be sustained. Former tax increment revenue that the SA receives from money deposited in the redevelopment property tax trust fund (RPTTF) from time to time, less county administrative charges and certain pass-through payments, secures the series 2016 TARBs. The merged project area spans 1,830 acres near downtown
