...S&P Global Ratings affirmed its 'A+' long-term rating on Alameda Contra Costa Transit District (AC Transit), Calif.'s series 2009 certificates of participation (COPs) and revised the outlook to negative from stable. Also, we affirmed our 'a+' stand-alone credit profile (SACP) and our 'A+' issuer credit rating (ICR) on AC Transit. The outlook for the long-term rating and ICR is negative. The negative outlook reflects our view that although cash-flow debt service coverage (DSC) has historically been strong, accrual-basis DSC will be below 1.0x based on estimated fiscal 2017 financials, and may remain lower than historic levels in fiscal 2018. We believe the pressure on DSC results from fluctuations in funding received from the state, a lack of fare increases between August 2011 and July 2017, and rising expenses. Despite the lower estimated and projected accrual-basis DSC, we believe cash-flow DSC and liquidity levels will likely remain at levels supportive of the current ratings, supported...
