Southern California Public Power Authority Bond Outlook Revised To Negative Following Burbank Outlook Revision

ENGLEWOOD (S&P Global Ratings) June 5, 2024--S&P Global Ratings revised its outlook to negative from stable and affirmed its 'AA-' long-term rating on the Southern California Public Power Authority's (SCPPA) bonds, issued for the Tieton Hydropower Project. The outlook revision follows an identical action on the City of Burbank's electric revenue bond ratings on May 31, 2024. Although the probability of default is remote, we view the rating on the Tieton hydro project as highly influenced by our rating and outlook on the Burbank electric system, which represents 50% of the project and would step up 100% under the unlikely event Glendale (A+/Stable) is unable to pay. "In our view, in the remote event that Glendale, the other 50% participant,

...June 5, 2024 ENGLEWOOD (S&P Global Ratings) June 5, 2024--S&P Global Ratings revised its outlook to negative from stable and affirmed its '##-' long-term rating on the Southern California Public Power Authority's (SCPPA) bonds, issued for the Tieton Hydropower Project. The outlook revision follows an identical action on the City of Burbank's electric revenue bond ratings on May 31, 2024. Although the probability of default is remote, we view the rating on the Tieton hydro project as highly influenced by our rating and outlook on the Burbank electric system, which represents 50% of the project and would step up 100% under the unlikely event Glendale (A+/Stable) is unable to pay. "In our view, in the remote event that Glendale, the other 50% participant, defaults on its payment obligation, Burbank is required to step up 100% for Glendale and make higher debt service payments, and we believe it could do so without meaningfully eroding its metrics or credit quality," said S&P Global Ratings...

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