Thursday, July 28, 2016

Los Osos CSD bonds information IS hard to get

TO: Kaiti Wang, S&P Global Ratings credit analyst

Hello Kaiti,

I'm a blogger in San Luis Obispo County, and I'm researching a story on the Los Osos Community Services District, and I recently read a press release from S&P Global Ratings, at this link:


... where 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."

Now, I'm sorry to have to bother you with this inquiry, but, in your press release, you are SO right when you write, "This action follows repeated attempts by S&P Global Ratings to obtain timely information of satisfactory quality," because, about two weeks ago, I emailed the LOCSD's General Manager, Peter Kampa, asking him about what's happening with the bonds, and why S&P Global Ratings is having so much trouble getting "timely information of satisfactory quality" regarding those extremely important bonds, but, of course, Mr. Kampa never replied (to me, as well), so, yes, I can now understand why your company was forced to "suspended its 'BBB-' underlying rating... on Los Osos Community Services District Wastewater Assessment District No. 1, Calif.'s series 2002 limited obligation improvement bonds," because, apparently, prying any information out of the LOCSD regarding those over-the-top important bonds is seemingly impossible.

You can read my full email to the LOCSD GM -- including information on what makes those bonds intensely newsworthy today (and until the year 2033/34) -- on my blog, at this link:


So, that's why I now have to apologize to you, for bothering you on information regarding the LOCSD's secretive bonds, but that agency just simply won't reply, despite the fact that they write on their web site:

"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."

Uh, not so much.

So, now, considering that LOCSD officials refuse to answer my questions, despite their highly hypocritical (and spell-check challenged ; -) statements on their web site, I'm hoping that you could answer just a couple of quick questions I have involving the state of the "Los Osos Community Services District Wastewater Assessment District No. 1, Calif.'s series 2002 limited obligation improvement bonds."

For example, I'm not exactly an expert on municipal bonds, so, when you write, "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," I'm not quite clear on what that means.

For example, I'm not clear on how suspending the "BBB- underlying rating" impacts the bonds. Can the bonds still be sold/purchased/etc. on the "secondary market" (I believe it's called) when the bonds' "underlying rating" is "suspended?"

Any information you could supply me with on the impact "suspending the "BBB- underlying rating" has on those bonds, I would very much appreciate.

Also, your press release is dated June 21, 2016, and it's now July 28, 2016. In the time since your press release was released, have you been able to "obtain timely information of satisfactory quality to maintain our rating on the securities," or is that still a problem?

Again, I apologize for having to bother you with my questions, but, as we both know now, it is very difficult to "obtain timely information of satisfactory quality" from the LOCSD, despite what their highly hypocritical and less-than-truthful web site states.

If you have any questions, please just ask (and, unlike the Los Osos CSD, I will reply in a "timely" fashion : -)

Thank you,
Ron

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


Thanks again.

--
~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
sewerwatch.blogspot.com

posted by Ron at 2:05 PM | 0 comments

Friday, July 15, 2016

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:


Well, I recently read, at this link:


"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:


... 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:


... 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:


... 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:


Thanks again.

--
~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
sewerwatch.blogspot.com

posted by Ron at 4:33 PM | 0 comments