McFarland Public Financing Authority
CUSIP 580406AK2
- Issue Currency: United States of America Dollars
- Announcement Date: 04-Sep-2018
- News: NOTICE IS HEREBY GIVEN that on August 22, 2018 S&P Global Ratings (S&P) downgraded its underlying rating of the Affected Bond Issue from A+ to BBB+. In compliance with the Continuing Disclosure Agreement/Certificate for the Affected Bond Issue, the Issuer is filing this notice of significant event.
- Issue Currency: United States of America Dollars
- Announcement Date: 22-Aug-2018
- News: S&P Global Ratings lowered its underlying rating (SPUR) to `BBB+` from `A+` on McFarland Public Financing Authority, Calif.`s series 2010A revenue bonds, issued on behalf of the City of McFarland. The rating reflects, in our opinion, the combination of an adequate enterprise risk profile and an adequate financial risk profile. The outlook is negative. We revised our rating based on a substantial weakening of financial performance for both the water system and the wastewater system--including insufficient all-in coverage for the water system in fiscal year 2017--and drawdowns of liquidity to $0 for both systems at the end of fiscal year 2017 and management`s expectation that balances will likely be reported at $0 at the end of fiscal year 2018 as well. The rating change affects $6.4 million of existing revenue bonds. The enterprise risk profile reflects our view of the systems`: Service area participation in the Bakersfield metropolitan statistical area economy, although the city`s unemployment rates have historically been high and exhibited seasonality; Very low industry risk as a monopolistic service provider of an essential public utility; Strong market position, although revenue-raising flexibility is constrained by the city`s below-average income levels and the county`s high poverty rate; and Adequate operational management practices and policies
- Issue Currency: United States of America Dollars
- Announcement Date: 06-Sep-2018
- News: S&P Global Ratings lowered its underlying rating (SPUR) to `BBB+` from `A+` on McFarland Public Financing Authority, Calif.`s series 2010A revenue bonds, issued on behalf of the City of McFarland. The rating reflects, in our opinion, the combination of an adequate enterprise risk profile and an adequate financial risk profile. The outlook is negative. We revised our rating based on a substantial weakening of financial performance for both the water system and the wastewater system--including insufficient all-in coverage for the water system in fiscal year 2017--and drawdowns of liquidity to $0 for both systems at the end of fiscal year 2017 and management`s expectation that balances will likely be reported at $0 at the end of fiscal year 2018 as well. The rating change affects $6.4 million of existing revenue bonds. The enterprise risk profile reflects our view of the systems`: Service area participation in the Bakersfield metropolitan statistical area economy, although the city`s unemployment rates have historically been high and exhibited seasonality; Very low industry risk as a monopolistic service provider of an essential public utility; Strong market position, although revenue-raising flexibility is constrained by the city`s below-average income levels and the county`s high poverty rate; and Adequate operational management practices and policies.
