Standard&Poor's Ratings Services placed its 'A+' rating on the City of Oceanside, Calif.'s series 2008 wastewater revenue refunding certificates of participation (COPs) on CreditWatch with negative implications. The CreditWatch listing reflects our view of the recent failure by the city to approve necessary rate increases to meet its rate covenant of 1.15x annual debt service without commensurate expenditure cuts. The COP debt service payments are due Nov. 1 and May 1 of each year. Management reports that the city will make its Nov. 1 payment. According to management, the city council voted 3-2 in favor of the necessary rate increase on Oct. 14, 2009. However, the motion was not adopted because at the time the city believed a
