...S&P Global Ratings assigned its 'A' long-term rating to the El Centro Financing Authority, Calif.'s expected $7.9 million lease revenue refunding bonds, 2021 series B (Transportation Improvements). At the same time, S&P Global Ratings affirmed its 'A' long-term rating on the authority's lease revenue bonds outstanding and its 'A+' issuer credit rating (ICR) on the City of El Centro. The outlook is stable. Securing the bonds are base rental payments by the city, as lessee, to the authority, as lessor, for the use of all of the city's streets. The base rental payments are subject to annual appropriation, and the city has covenanted to budget for and make annual appropriations for all base rental payments related to the leased streets and securing the bonds. The 2021 lease documents include the city's pledge to make its best efforts to seek appropriations annually out of its operating budget. Payments are subject to abatement if the leased assets are damaged or destroyed, and the bonds do...
