S&P Global Ratings affirmed its 'A+' long-term rating on Los Angeles' solid waste resources (SWR) and sanitation equipment bonds. Outstanding debt affected is $164 million. The outlook is stable; The bonds are secured by a senior lien on gross revenue from the SWR fees as well as miscellaneous related revenue, including interest earnings and penalties. Despite the gross revenue pledge, our analysis focuses on revenue available for debt service after consideration of operating costs (a de facto net revenue pledge) because, in our view, a system must pay operating expenses to be a viable concern that will generate revenue for the payment of debt service. In Los Angeles' case, we are also including general fund support in our analysis. We
