S&P Global Ratings assigned its 'AA' rating to Hayward, Calif.'s proposed $39.69 million 2023 refunding certificates of participation (COPs). At the same time, S&P Global Ratings affirmed its 'AA' long-term rating on the city's previously issued series 2015 COPs. The outlook is stable. The 2023 COPs represent an interest in the lease payments made by the city. Pursuant to a lease agreement between Hayward (as lessee) and the Hayward Public Financing Authority (as lessor), the city has covenanted to budget and appropriate annual lease payments, subject to abatement, for use of certain assets. In our view, the lease features and terms are standard for an abatement lease and the leased asset meets our minimum threshold for seismic risk during the
