Standard&Poor's Ratings Services raised its rating and underlying rating (SPUR) to 'AA-' from 'A+' on Southern California Public Power Authority's (SCPPA or the authority) outstanding subordinated transmission project revenue bonds. The raised ratings reflect our view of the improved credit quality of the participants, namely Burbank, Glendale, and Pasadena, whose bond ratings we recently raised to 'AA-' from 'A+'. The ratings additionally reflect our view of: The credit quality of the six California municipal electric systems, all of which are currently rated 'AA-', that are severally obligated to pay Southern Transmission System (STS) project debt service; 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
