Standard & Poor’s revised on Monday its outlook to stable from negative on several series of subordinate tax allocation bonds issued by Lancaster, Calif.’s Financing Authority, while affirming its speculative-grade BB underlying rating.
“We revised the outlook to stable after the successor agency to the former Lancaster Redevelopment Agency replenished most parity debt service reserve funds and managed its recent recognized obligation payment schedule (ROPs) requests to include amounts necessary to replenish debt service funds required by the loan agreements,” said Standard & Poor’s credit analyst Sussan Corson. The change affects the series 2003, 2003B, 2004B and 2006 TABs.
The stable outlook reflects the successor agency’s replenishment of most debt service reserve funds and its management of its recent ROPS requests to include amounts necessary to replenish debt service funds required by the loan agreements. Lancaster, with a population of about 160,000, is about 65 miles northeast of Los Angeles in the southwest portion of Antelope Valley.