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Colton (City of) CA Electric Enterprise -- Moody's affirms A3 rating of Colton, CA Electric Enterprise revenue bond rating; outlook negative

Moody's Investors Service has affirmed the A3 rating on the City of Colton, California's Electric Enterprise revenue bonds. Today's rating action reflects Moody's view that the utility's operating environment in California has become more challenging as legislators and other policy makers look for viable alternatives around laws and proceedings involving the application of inverse condemnation while simultaneously balancing the potential impact on municipal utilities and ratepayers. The potential risk of wildfires related to inverse condemnation could materially impact the utility long-term as the frequency and intensity of these fires increase, coupled with subsequent mudslides that often follow when heavy rains occur after a fire.