S&P: Channel Islands Beach Community Services District, CA 2016 Bonds Assigned 'A+' Rating
"The rating reflects, in our opinion, the combination of very strong enterprise risk and financial risk profiles," said S&P Global Ratings credit analyst John Schulz.
The series 2016 bonds are being issued to refund the district's series 2005 wastewater bonds.
The bonds are secured by a pledge on the wastewater system's net revenues.
Channel Islands Beach Community Services District, with a population of approximately 3,000 is approximately 62 miles west of Los Angeles near Oxnard in Ventura County. At the end of fiscal 2015, there were 2,258 customers, about 98% of which were residential.
"The stable outlook reflects our view of the district's flexible operations and our expectation that it will continue to produce extremely strong all-in debt service coverage metrics, supported by management's willingness to implement appropriate and timely rate increases to fund the identified capital improvement plan," added Mr. Schulz.
If Oxnard identifies the capital needs of the district and the district provides a funding plan and puts financial policies in place that are more commensurate with a higher rating level, we could raise the rating. Conversely, we could take a negative rating action if the district's financial margins erode significantly or if it undertakes large unidentified capital projects, leading to financial metrics that are inconsistent with the rating level.
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