...S&P Global Ratings raised its long-term rating on Alameda-Contra Costa Transit District (AC Transit or the district), Calif.'s series 2019 refunding certificates of participation (COPs) to '##' from 'A+'. The outlook is negative. Our rating reflects the application of our updated criteria "Global Not-For-Profit Transportation Infrastructure Enterprises," published Nov. 2, 2020. Our long-term rating on the COPs also reflects the application of our "Issue Credit Ratings Linked To U.S. Public Finance Obligors' Creditworthiness," criteria, Nov. 20, 2019, because the district includes the lease payments on the COPs in its annual budget, which is subject to appropriation. Given our analysis of the COP provisions and AC Transit as a mass transit operating entity, we view the risk of non-appropriation as remote. The COPs represent an interest in lease payments made by the district, as lessee, to the nonprofit AC Transit Financing Corp., as lessor, for the use and possession of the various leased...
