Standard & Poor's Ratings Services raised its long-term rating and underlying rating to BBB-plus from BBB on the San Jose Redevelopment Agency, Calif.'s senior nonhousing tax allocation bonds.
The outlook is stable.
"The raised ratings reflect our view of the improvement in assessed valuation during the past three years, which has boosted maximum annual debt service coverage to a level we consider adequate, despite the absence of the pension override levy," said Standard & Poor's credit analyst Sarah Sullivant. "The upgrade further reflects our opinion of the current status of the agency's disputes with the county auditor-controller over post-dissolution flow of funds, which, while not completely resolved, have stabilized at a point that we believe poses minimal risk to the agency's ability to manage semiannual cash flow in order to make timely debt service payments on its bonds."
