Summary: Southern California Public Power Authority; Joint Criteria; Wholesale Electric

S&P Global Ratings revised the outlook to negative from stable and affirmed its 'AA-' long-term rating and underlying rating (SPUR) on the Southern California Public Power Authority's (SCPPA) revenue bonds outstanding, issued for Magnolia Power Project A. In addition, we affirmed our 'AAA/A-1+' rating on SCPPA's series 2009-1 refunding revenue bonds (Magnolia Power Project A) based on the application of joint criteria, assuming low correlation between SCPPA (AA-) and the letter-of-credit (LOC) provider for the series 2009-1 bonds, U.S. Bank N.A. (AA-/A-1+). The outlook revision follows an identical action on the Anaheim senior (AA-) and subordinate (A+) electric revenue bond ratings on April 3, 2020. Although the possibility of default is remote, we view the rating on the project as

...S&P Global Ratings revised the outlook to negative from stable and affirmed its '##-' long-term rating and underlying rating (SPUR) on the Southern California Public Power Authority's (SCPPA) revenue bonds outstanding, issued for Magnolia Power Project A. In addition, we affirmed our '###/A-1+' rating on SCPPA's series 2009-1 refunding revenue bonds (Magnolia Power Project A) based on the application of joint criteria, assuming low correlation between SCPPA (##-) and the letter-of-credit (LOC) provider for the series 2009-1 bonds, U.S. Bank N.A. (##-/A-1+). The outlook revision follows an identical action on the Anaheim senior (##-) and subordinate (A+) electric revenue bond ratings on April 3, 2020. Although the possibility of default is remote, we view the rating on the project as highly influenced by our rating and outlook on the Anaheim electric system, which represents 38% of project A entitlement and 40% of project A indenture cost share. When including the required maximum 35% step-up...

Summary