Summary: El Centro Financing Authority, California El Centro; Appropriations; General Obligation

S&P Global Ratings affirmed its 'A+' issuer credit rating (ICR) on the City of El Centro, Calif., and its 'A' long-term rating on El Centro Financing Authority's lease revenue bonds. The outlook is stable. The lease revenue bonds are secured by lease rental payments made by the city, as lessee, to the El Centro Finance Authority, as lessor, for the use of the leased property, which is the city's road system. We rate these obligations one notch lower than the city's ICR to account for the appropriation risk associated with the lease payment. The city has covenanted to budget and appropriate funds for the bonds' repayment, and has considered the affordability of the lease payment in its long-term plans. We

...S&P Global Ratings affirmed its 'A+' issuer credit rating (ICR) on the City of El Centro, Calif., and its 'A' long-term rating on El Centro Financing Authority's lease revenue bonds. The outlook is stable. The lease revenue bonds are secured by lease rental payments made by the city, as lessee, to the El Centro Finance Authority, as lessor, for the use of the leased property, which is the city's road system. We rate these obligations one notch lower than the city's ICR to account for the appropriation risk associated with the lease payment. The city has covenanted to budget and appropriate funds for the bonds' repayment, and has considered the affordability of the lease payment in its long-term plans. We considered the affordability and likelihood of the lease payment, which is reflected in the appropriation rating and in the ICR. In our view, the lease features and terms are standard, with no unusual risks regarding timely payment of debt. Under the agreements, the city can abate lease...

Summary