S&P Global Ratings raised its underlying rating (SPUR) to 'BBB' from 'BBB-' on El Cerrito, Calif.'s outstanding certificates of participation (COPs). The outlook is positive. The raised rating action our view of the city's improved financial position and internal controls, resolving the trend of "going concern" opinions by the auditors, restoring structural balance, and demonstrating material progress in addressing state auditor findings. The positive outlook reflects our opinion that we could raise the rating further if the trend of structural balance and at least adequate reserves is sustainable beyond short-term budgetary relief and if its recently enhanced financial management policies and practices are maintained. The outstanding COPs are secured by lease rental payments made by the city of El Cerrito,
