OREANDA-NEWS. S&P Global Ratings raised its long-term rating to 'AA-' from 'A+' on the Successor Agency (SA) to the La Quinta Redevelopment Agency (RDA), Calif.'s existing subordinate lien tax allocation refunding bonds (TARBs), series 2013A and series 2013B. At the same time, S&P Global Ratings raised its long-term rating to 'AA' from 'AA-' on the SA's senior lien tax allocation bonds, series 2014A. S&P Global Ratings assigned its 'AA-' long-term rating on the SA's subordinate lien TARBs, series 2016A. The outlook on all ratings is stable.

"The raised rating reflects our view of the stronger coverage levels on both the senior and subordinate lien due to the continued growth in project area's assessed values and subordination of passthroughs," said S&P Global Ratings credit analyst Li Yang.

We note that the 2016A bonds are being issued on parity with the SA's other subordinate lien bonds, the series 2013A and 2013B bonds. We note that the series 2016A bond proceeds will be used to refund the SA's series 2011 subordinate taxable TABs issued for project area No. 2.

The SA maintains two project areas, project area 1 and project area 2. Together, the two project areas encompass about 23 of the city's 35 square miles and account for 64% of the city's total corporate area, with land zoned for mixed residential, commercial, and industrial uses. Project area No.1 is the larger of the agency's two project areas at 11,475 acres. Project Area No. 2 encompasses 3,130 acres of the northwestern portion of the city. The project area is also largely residential.