S&P: Successor Agency to the Rancho Cucamonga Redevelopment Agency, CA Series 2016 Tax Allocation Refunding Bonds Rated 'A+'
The rating service also affirmed its 'A+' rating on the Rancho Redevelopment Housing series 2007B set-aside tax allocation bonds.
"The stable outlook reflects our view of good maximum annual debt service coverage as a result of pledged revenue," said S&P Global Ratings credit analyst Michael Stock.
The 2016 non-housing bonds are payable from and secured by the non-housing tax revenues, generated by the project area. Additional tax revenue includes monies deposited from time to time in the redevelopment property tax fund. Moreover, tax revenue includes funds that are no longer required to be deposited into the redevelopment agency's low and moderate income housing fund; however, payments for housing debt service will continue at the same rate. The 2016 TARBs are in parity with the 2014 TARBs.
The 2007B housing bonds are payable from and secured by the housing tax revenues, generated by the project area. Upon issuance of the 2016 bonds, the 2007A housing bonds will be discontinued.