Southern California Public Power Authority Revenue Bond Ratings Placed On CreditWatch Negative

SAN FRANCISCO (S&P Global Ratings) Sept. 4, 2020--S&P Global Ratings placed on CreditWatch with negative implications its 'AA-' long-term rating and underlying rating (SPUR) on the Southern California Public Power Authority's (SCPPA) revenue bonds outstanding and its 'AAA/A-1+' dual rating on SCPPA's series 2020-3 refunding revenue bonds. All bonds were issued for Magnolia Power Project A. The CreditWatch placement follows an identical action on the City of Anaheim senior (AA-) and subordinate (A+) electric revenue bond ratings on Sept. 2, 2020. "Although the possibility of default is remote, we view the rating on the project as highly influenced by our rating and outlook on the Anaheim electric system, which represents 38% of Project A entitlement and 40% of Project A

...September 4, 2020 SAN FRANCISCO (S&P Global Ratings) Sept. 4, 2020--S&P Global Ratings placed on CreditWatch with negative implications its '##-' long-term rating and underlying rating (SPUR) on the Southern California Public Power Authority's (SCPPA) revenue bonds outstanding and its '###/A-1+' dual rating on SCPPA's series 2020-3 refunding revenue bonds. All bonds were issued for Magnolia Power Project A. The CreditWatch placement follows an identical action on the City of Anaheim senior (##-) and subordinate (A+) electric revenue bond ratings on Sept. 2, 2020. "Although the possibility of default is remote, we view the rating on the project as highly influenced by our rating and outlook on the Anaheim electric system, which represents 38% of Project A entitlement and 40% of Project A indenture cost share," said S&P Global Ratings credit analyst Paul Dyson. With inclusion of the required maximum 35% step-up in the event that participants other than Anaheim default on required payments,...

Ratings Action