Standard & Poor's Ratings Services said it raised to A-minus from BBB its long-term rating on Solana Beach Public Financing Authority, Calif.'s series 2012 special tax revenue bonds.
The outlook is stable.
"The upgrade is based on community facility district 2004-1's nearly built-out status and tax base expansion," said Standard & Poor's credit analyst Kaiti Wang.
The rating further reflects: partial cross-collateralization via a fully cash-funded debt service reserve fund held at the authority level that can be drawn upon in the event that revenue from any underlying district is insufficient; over 1x debt service coverage generated by special taxes from developed, individually owned parcels only; and very strong resident income levels, with median household effective buying income at 165% of the national level.
