Summary: Mountain House Financing Authority, California Mountain House Community Services District; Combined Utility; Water/Sewer

S&P Global Ratings lowered its rating three notches to 'BBB-' from 'A-' on Mountain House Community Services District, Calif.'s outstanding utility system bonds. At the same time, S&P Global Ratings assigned its 'BBB-' long-term rating to the Mountain House Financing Authority, Calif.'s series 2019A&B utility system revenue refunding bonds issued for the district. The rating reflects the application of our "U.S. Public Finance Waterworks, Sanitary Sewer, And Drainage Utility Systems: Rating Methodology And Assumptions" criteria (published Jan. 19, 2016, on RatingsDirect) and the combination of a very strong enterprise risk profile and a vulnerable financial risk profile. The outlook is stable. The lowered rating primarily reflects our opinion of the district's current financial position, which we consider weak. The district's

...S&P Global Ratings lowered its rating three notches to '###-' from 'A-' on Mountain House Community Services District, Calif.'s outstanding utility system bonds. At the same time, S&P Global Ratings assigned its '###-' long-term rating to the Mountain House Financing Authority, Calif.'s series 2019A&B utility system revenue refunding bonds issued for the district. The rating reflects the application of our "U.S. Public Finance Waterworks, Sanitary Sewer, And Drainage Utility Systems: Rating Methodology And Assumptions" criteria (published Jan. 19, 2016, on RatingsDirect) and the combination of a very strong enterprise risk profile and a vulnerable financial risk profile. The outlook is stable. The lowered rating primarily reflects our opinion of the district's current financial position, which we consider weak. The district's water and wastewater funds held negative retained earnings as of June 30, 2018, and management's financial forecast indicates that both funds' operating margins will...

Summary