Standard & Poor's Ratings Services said it raised its long-term rating to A-minus from BBB-plus on the Successor Agency to the Azusa Redevelopment Agency, Calif.'s subordinate refunding tax allocation bonds, series 2014A.
At the same time, Standard & Poor's assigned its A-minus long-term rating to the SA's series 2015A and 2015B tax allocation bonds. The outlook on all bonds is stable.
A&P also raised the underlying rating on the agency's 2007A tax increment bonds to A-plus.
"The raised rating reflects our view of the project area's strong assessed value growth," said Standard & Poor's credit analyst Li Yang. "We believe this growth has led to good coverage levels for the bonds."
The proceeds from the 2015 TABs will be used to refund the agency's series 2005A senior-lien bonds, 2008B housing bonds, and a portion of the series 2007A subordinate lien bonds. The unrefunded portion of the 2007A bonds and the 2007B bonds will remain outstanding and senior to the 2014 and 2015 TABs. We understand that the 2015 TABs will be secured by an investment-grade surety bond.
The city of Azusa has acted as SA to the former redevelopment agency since the state legislature and a subsequent court ruling dissolved all RDAs in California in February 2012.
The merged project area encompasses 1,397 acres in Azusa, or 24% of the city's total acreage.
