Summary: Los Angeles, California; Water/Sewer

S&P Global Ratings revised its outlook to negative from stable and affirmed its 'AA+' long-term rating and underlying rating (SPUR) on Los Angeles, Calif.'s wastewater system senior-lien bonds and its 'AA' long-term rating and SPUR on the city's wastewater system subordinate-lien bonds. At the same time, we assigned our 'AA' long-term rating, with a negative outlook, to the city's approximately $111.2 million series 2022A wastewater system subordinate revenue bonds, $70.3 million series 2022B subordinate taxable revenue bonds, and $360.2 million series 2022C wastewater system subordinate revenue refunding bonds. The outlook revision to negative reflects our view of the Los Angeles Bureau of Sanitation (LASAN) wastewater system's weakened risk management practices relative to our governance factors that we capture under environment, social,

...S&P Global Ratings revised its outlook to negative from stable and affirmed its '##+' long-term rating and underlying rating (SPUR) on Los Angeles, Calif.'s wastewater system senior-lien bonds and its '##' long-term rating and SPUR on the city's wastewater system subordinate-lien bonds. At the same time, we assigned our '##' long-term rating, with a negative outlook, to the city's approximately $111.2 million series 2022A wastewater system subordinate revenue bonds, $70.3 million series 2022B subordinate taxable revenue bonds, and $360.2 million series 2022C wastewater system subordinate revenue refunding bonds. The outlook revision to negative reflects our view of the Los Angeles Bureau of Sanitation (LASAN) wastewater system's weakened risk management practices relative to our governance factors that we capture under environment, social, and governance (ESG). We believe the utility faces heightened business risks due to both shortcomings in asset stewardship around its recent sewage spill,...

Summary