The 'BBB+' rating on West Contra Costa Unified School District, Calif.'s certificates of participation reflects: California's statutory requirement to intercept state school fund apportionment amounts for payment to the trustee in the event the district defaults in any future payment of base rent; Strong coverage of debt service by state apportionment payments; Covenant to budget and appropriate lease payments; and General creditworthiness of the district. The certificates are secured by district lease payments for use of two highly essential high schools and other district property. Under an asset-transfer lease, the district has covenanted to budget and appropriate lease payments for use of two high schools and various administration facilities. Under Assembly Bill 536, in the event that the district defaults
