Utilities

A decline in debt service coverage drove S&P's four-notch downgrade for Salinas, California, sewer revenue debt, which it placed on CreditWatch negative.

The county achieved its many goals through long-running discipline, planning, and intelligent risk taking.

The court affirmed its earlier decision, which means bondholders have a claim on the full $8.5 billion due.

The upgrade affects most but not all of MEAG's outstanding bonds.

Observers say the decision may be a credit positive for the financially struggling utility

The downgrade affects $2.1 billion in bond debt and extends to its utility debt.

Recent EPA regulations mandating utilities remove lead pipes from distribution systems within 10 years will add to the financial burden.

Local governments that were in Hurricane Milton's path, however, will face significant credit challenges, Moody's said.

Falcone's agenda as president of the group will include tax provisions, subsidies, permit reform and affordable access to credit.

Santa Cruz, on California's coast, was particularly hard hit by flooding in 2023. In addition to the the I-Bank loan, the city secured a federal loan.