Summary: Benicia, Califonria; Water/Sewer Nov 11

Standard & Poors, November 2011

Abstract
Standard & Poor's Ratings Services lowered its long-term and underling ratings (SPUR) to 'A+' from 'AA' on Benicia, Calif.'s series 2002 water revenue refunding bonds. The outlook is negative. The lowered rating reflects our view of the city's decreased coverage of revenue bond and state loan debt service during the past three years, with coverage dropping below 1.0x in fiscals 2010 and 2011. The city last increased water rates in 2006. Since 2007, operating revenues have been stagnant or slightly decreasing while expenses have trended upward, leading to the lower coverage. The 'A+' rating is based on our view that the strong cash levels in the water fund provide the city with some financial flexibility during a temporary period of...

Companies mentioned in this report are: Benicia
Action: Downgraded
Action: Outlook: Negative

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Benicia

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