Standard & Poor’s said it raised its rating and underlying rating to AA-plus from AA on Riverside, Calif.’s outstanding water revenue debt.
In addition, it assigned its AA-plus rating to the city’s $50 million fixed-rate water revenue bonds, Series 2008B. At the same time, Standard & Poor’s assigned its AA-plus/A-1-plus rating to the city’s $60 million variable-rate refunding water revenue bonds, Series 2008A. The outlook is stable.
“The raised rating is based on the city’s continued strong financial management, minimal capital needs, and a growing service area economy,” said credit analyst Ian Carroll. “In addition, the city’s capital plan is modest, as it is focused on pipeline replacement.”
The A-1-plus short-term rating is based on a standby purchase agreement provided by Bank of America NA.