The rating on Oceanside, Calif.'s certificates of participation is affirmed based on review of audited fiscal 1998 financial statements and other related information. Certificates are secured by city lease rental payments. In addition, the city covenants to levy and collect assessments annually for its landscaping and lighting district in an amount sufficient to pay lease payments. The rating reflects the inherent risk associated with a lease structure in which payments are dependent on the city's willingness and ability to appropriate. Additional rating factors include a lease legal structure that includes the city's covenant to budget and appropriate lease payments, and the general creditworthiness of the city. The city's general creditworthiness includes: Proximity to the broader San Diego metropolitan area economy,
