Standard&Poor's Ratings Services assigned its 'A+' rating, and stable outlook, to Southern California Public Power Authority's (SCPPA) series 2007-1 refunding revenue bonds (Magnolia Power Project A). The rating reflects: The credit strength of the series A participants--particularly Anaheim, Burbank, Glendale, and Pasadena--all of which have electric system revenue bond ratings of at least 'A+', which together account for more than 90% of project costs and project output entitlements; Good project economics, including a below-market heat rate overall, especially during peak periods, and operating costs that are projected to be competitive against firm-power costs for the participants, despite higher gas costs than originally forecast; Good legal protections, including the classification of the participants' power sales contract payments as operating
