Standard&Poor's Ratings Services assigned its 'A+' rating to Southern California Public Power Authority's (SCPPA or the authority) $125 million subordinated transmission project revenue bonds, series 2009A, issued for the Southern Transmission Project (STS). At the same time, Standard&Poor's affirmed its 'A+' rating and underlying rating (SPUR) on SCPPA's outstanding parity debt. The ratings reflect what Standard&Poor's believes are the following strengths: The credit quality of the six California municipal electric systems that are severally obligated to pay STS' debt service, all of whom are rated 'A+' or higher; The unlimited step-up nature of the take-or-pay transmission service contracts, which unconditionally require the cities to pay operations and debt service on the project; and STS'
