...Standard & Poor's Ratings Services assigned its '##' rating to Hayward, Calif.'s 2015 certificates of participation (COPs) and affirmed its '##' long-term rating and underlying rating (SPUR) on the city's lease revenue bonds, series 2001-2, and COPs, series 2007. The outlook is stable. The 2015 COPs represent an interest in the lease payments made by the city. Pursuant to a lease agreement between Hayward and the Hayward Public Financing Authority, the city has covenanted to budget and appropriate annual lease payments, subject to abatement, for use of certain assets. To mitigate the risk of abatement in such a case, the city has covenanted to maintain at least 24 months of rental-interruption insurance coverage. We understand that the city also plans to fund a debt service reserve. We understand that the proceeds of the COPs will be used to construct a new library and community learning center, new fire training academy, improvements to existing fire stations, and street rehabilitation....
