LOCSD's wastewater bond rating "suspended" by S&P Global Ratings

TO: Peter Kampa, Interim General Manager, Los Osos CSD

Hello Mr. Kampa,

I'm researching a story, and I just have couple of quick questions involving the municipal bonds that the LOCSD issued back in 2002/03 for the LOCSD's now-failed, "mid-town" wastewater "project," and that are being paid off by "4,203" Los Osos property owners (on their property tax bills) until the year 2033, as I first exposed in 2013, at this link:

http://sewerwatch.blogspot.com/2013/05/junk-bonds-twice-year-fleecing-of-los.html

Well, I recently read, at this link:

http://www.alacrastore.com/s-and-p-credit-research/Los-Osos-Community-Services-District-Wastewater-Assessment-District-No-1-CA-Bond-Rating-Affirmed-At-BBB-Off-Watch-1389112

"SAN FRANCISCO (Standard&Poor's) March 13, 2015--Standard&Poor's Ratings Services affirmed its 'BBB-' underlying rating (SPUR) on Los Osos Community Services District Wastewater Assessment District No. 1, Calif.'s limited-obligation improvement bonds outstanding and removed the rating from CreditWatch with negative implications. The outlook is stable. 'The rating had been placed on CreditWatch with negative implications on Dec. 15, 2014, due to the lack of timely information, a situation that the district has since resolved,' said Standard&Poor's credit analyst Misty Newland."

However, that report was published on "March 13, 2015," and, in a more recent report, dated, "June 21, 2016," at this link:

http://www.alacrastore.com/s-and-p-credit-research/Los-Osos-Community-Services-District-Wastewater-Assessment-District-No-1-CA-Rating-Suspended-On-Lack-Of-Information-1660757

... it reads:

"Los Osos Community Services District Wastewater Assessment District No. 1, CA Rating Suspended On Lack Of Information

SAN FRANCISCO (S&P Global Ratings) June 21, 2016--S&P Global Ratings has suspended its 'BBB-' underlying rating (SPUR) on Los Osos Community Services District Wastewater Assessment District No. 1, Calif.'s series 2002 limited obligation improvement bonds. At the same time, S&P Global Ratings has removed the rating from CreditWatch with negative implications. "This action follows repeated attempts by S&P Global Ratings to obtain timely information of satisfactory quality to maintain our rating on the securities in accordance with our applicable criteria and policies," said S&P Global Ratings credit analyst Kaiti Wang."

Here's my question: What happened there? Why is S&P Global Ratings having so much trouble "obtaining timely information of satisfactory quality" from the Los Osos CSD for something so important as the more than $17 million in bonds that the LOCSD issued back in 2003 for their now-failed "mid-town" sewer disaster, and that more than 4,000 Los Osos property owners are stuck paying for until the year 2033?

Is there all of a sudden a problem with securing the bonds? For example, are more and more Los Osos property owners finally waking up to what I first exposed at this link:

http://sewerwatch.blogspot.com/2013/05/junk-bonds-twice-year-fleecing-of-los.html

... that those property owners are stuck funding a fraud for the next 18 years, and, therefore, understandably, they now refuse to pay that fraudulent assessment -- a fraudulent assessment, for a now-failed sewer disaster, and a fraqudulent assessment that is the ONLY thing that is securing those bonds -- and, perhaps, have contacted their attorneys, and THAT's why this: "Los Osos Community Services District Wastewater Assessment District No. 1, CA Rating Suspended On Lack Of Information?"

Is it that, or is it something else? I mean, what's the deal there?

This whole mess smells really fishy.

I'm very curious to know the answer, because, on the District's web site, at this link:

http://www.losososcsd.org/district-transparency

... it reads:

"District Transparency

As a local goverment [sic] agency, this Los Osos Community Services District has a responsibility to remain transparent to the public. We are held accountable by our community."

Well, this:

"This action follows repeated attempts by S&P Global Ratings to obtain timely information (from the LOCSD) of satisfactory quality to maintain our rating on the securities..."

... doesn't sound much like this:

"... a responsibility to remain transparent to the public. We are held accountable by our community."

Any information you could supply me with on why, just a few weeks ago, "S&P Global Ratings has suspended its 'BBB-' underlying rating (SPUR) on Los Osos Community Services District Wastewater Assessment District No. 1, Calif.'s series 2002 limited obligation improvement bonds," would be much appreciated.

Thanks,

Ron

P.S: This email posted to my blog, SewerWatch, at this link:

http://sewerwatch.blogspot.com/

Thanks again.

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