...S&P Global Ratings assigned its '##+' long-term rating to Oceanside, Calif.'s series 2021 water revenue refunding bonds. The outlook is stable. The series 2021 refunding bonds will have a par amount of approximately $8.89 million and the proceeds will be used to refund a portion of the series 2013A obligations outstanding. The city will have $24.9 million series 2020A bonds outstanding, the WIFIA loan amount with a maximum principal of $68 million, and the unrefunded portion of the $11 million series 2013 bonds outstanding. We view the revenue refunding bond provisions as credit neutral. The bonds are payable from net revenues of the city's water system. Covenants include a 1.25x rate covenant and a 1.25x additional bonds test. For the purpose of the rate covenant, amounts transferred from a rate stabilization fund are treated as revenues, but may not count toward more than 25% of annual debt service. For the purpose of the additional bonds test, the city may make an adjustment to annualize...
