...S&P Global Ratings revised the outlook to positive from stable and affirmed its 'A-' underlying rating (SPUR) on the El Centro Financing Authority, Calif.'s bonds outstanding, issued for the City of El Centro. The outlook revision reflects our view of the sewer system's robust all-in coverage of at least 2x during the past three fiscal years and exceptionally strong cash position with more than four years of operating expenses as of fiscal 2020. However, the city is still in the process of completing its sewer master plan and rate study, which will better clarify future costs. With these updates, we expect to have a better understanding of capital needs and how planned rate increases will enable management to progress through its capital improvement program (CIP) while maintaining robust liquidity and debt service coverage (DSC). We view the bond provisions as credit neutral. The bonds are payable from installment payments that are secured by net revenue of the city's wastewater system,...
