OREANDA-NEWS. S&P Global Ratings revised the outlook to positive from stable and affirmed its 'B-' long-term rating and underlying rating (SPUR) on the Stockton Public Financing Authority, Calif.'s series 2003A and 2003B certificates of participation (COPs) and its 'B-' SPUR on the authority's series 2006A lease revenue refunding bonds. All series are appropriation obligations of Stockton.

"The outlook revision reflects our view that positive economic performance, sustained cost controls, and a new formal reserve policy suggest that the city is positioning itself financially to better respond to revenue effects of the next recession," said S&P Global Ratings credit analyst Chris Morgan. "The outlook revision also reflects our view that credit quality is likely to improve to the degree that the city can sustain its gains in reserves and maintain compliance with its new policy," Mr. Morgan added.