S&P changes California Water view

S&P said it revised its outlook on California Water Service Co. to negative from stable.

At the same time, the agency affirmed the ratings on the company, including the A+ issuer credit rating, the AA- rating on its first-mortgage bonds and the A+ rating on its senior unsecured bank loan.

In addition, S&P revised the company’s liquidity assessment to adequate from exceptional, reflecting less availability on the company's overall sources of liquidity.

S&P said the revision follows parent California Water Service Group's announced cash tender offer to acquire SJW Group.

“The negative outlook reflects increased event risk associated with a potential transaction with SJWG, including the potential for CWSG's financial measures to weaken further in light of the announced cash tender offer,” the agency said in a news release.

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