S&P Global Ratings revised its outlook to negative from stable and affirmed its 'AA-' long-term rating on the Southern California Public Power Authority's (SCPPA) bonds, issued for the Tieton Hydropower Project. The outlook revision follows an identical action on the City of Burbank's electric revenue bond ratings on May 31, 2024. Although the probability of default is remote, we view the rating on the Tieton hydro project as highly influenced by our rating and outlook on the Burbank electric system, which represents 50% of the project and would step up 100% under the unlikely event Glendale (A+/Stable) is unable to pay. Securing the bonds are payments from the electric systems of project participants Burbank and Glendale (water and power divisions)
