San Benito County, CA 2019 Certificates Of Participation Assigned 'AA' Rating


SAN FRANCISCO (S&P Global Ratings) Feb. 5, 2019--S&P Global Ratings assigned 
its 'AA' long-term rating to San Benito County Financing Corp., Calif.'s 
series 2019 certificates of participation (COPs; Jail Facility Project), 
issued on behalf of San Benito County. We estimate the county will have about 
$19 million in governmental debt outstanding at the end of fiscal 2019. The 
outlook is stable.

"The ratings reflect our assessment of the county's strong economy, adequate 
management, and strong budgetary performance," said S&P Global Ratings credit 
analyst Chris Morgan.

Payments on the bonds will be secured by lease payments made by the county, as 
lessee, to San Benito County Financing Corp., as lessor, for the use of the 
facility, and we have assigned a rating one notch below our view of the 
county's general creditworthiness to reflect appropriation risk. 

The series 2019 proceeds will fund a portion of a $24.5 million expansion of 
the county's jail facility to approximately double its size and improve safety 
within the facility.

"The stable outlook reflects our view that San Benito County's strong 
financial performance will translate into maintenance of ample reserves at 
approximately the fiscal year 2017 and 2018 levels, although we anticipate 
that rising pension contribution requirements could make for a more 
challenging budgetary environment in the medium term," added Mr. Morgan. We 
don't expect to change the rating during our two-year outlook horizon.
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