Standard & Poor's removed California's Peninsula Corridor Joint Powers Board from CreditWatch Dec. 22, citing improved budget operations.
The board, which was placed on CreditWatch one year ago, also had its A issuer credit rating, the A rating on its series 2007A senior-lien farebox revenue bonds, and its 'a' stand-alone credit profile affirmed by S&P Monday.
The rating outlook remains negative.
"The affirmation and negative outlook reflect our view of a budget that achieves balanced operations through the use of a liquidity draw, and according debt service coverage below 1x," said Standard & Poor's credit analyst Adam Torres.
The joint powers board operates Caltrain, a heavy-rail commuter service that connects San Francisco and San Jose.
The ratings agency said the agency operated a surplus for fiscal year 2014 and the board did not need to use a portion of its cash reserves to meet full obligations.
S&P said its outlook could be revised to stable if the agency does not draw on liquidity after the current fiscal year ends and budgets without use of one-time cash resources.
The rating could be lowered if the agency does draw on liquidity to balance its budget.
