California Administrative Services Authority's 2002 Revenue Bond Rating Suspended
NEW YORK (Standard & Poor's) June 23, 2004--Standard & Poor's Ratings
Services suspended its 'A' underlying rating (SPUR) on California
Administrative Services Authority's $6.295 million revenue bonds series
2002, issued for Sacramento City Unified School District.
The suspension results from the lack of timely information made available
to Standard & Poor's by the authority.
The bonds were issued in 2002 pursuant to the financing plan of the
authority. Proceeds were used to finance a portion of the district's
unfunded actuarial pension liabilities with respect to former district
employees who were on leave from the district and employed by the
authority. The authority is a joint exercise of powers authority
established under California law and created between the district and the
Yolo County Board of Education with the intention of providing more
favorable pension benefits to certain district employees.
Standard & Poor's understands that in April 2004, the district board
allegedly voted to withdraw from the authority's pension plan, and, on
June 4, the district allegedly filed a lawsuit to determine, among other
matters, whether the district or the authority should have control over
the proceeds from the 2002 bonds.
Standard & Poor's also understands that the district has allegedly
requested that the authority surrender the bond funds, but the authority
has allegedly not complied. We have requested copies of the lawsuit,
information about the custody of bond proceeds, and other information
relevant to the rating on the bonds. At the time the rating committee met,
no such information had been received. Upon receipt by Standard & Poor's
of adequate information, the rating on the bonds may be reinstated.
Complete ratings information is available to subscribers of
RatingsDirect, Standard & Poor's Web-based credit analysis system, at
www.ratingsdirect.com. All ratings affected by this rating action can be
found on Standard & Poor's public Web site at www.standardandpoors.com;
under Credit Ratings in the left navigation bar, select Find Ratings, then
Credit Ratings Search.
| Credit Analyst: |
Parry Young, New York (1) 212-438-2120 David G Hitchcock, New York (1) 212-438-2022 |
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