Fitch Ratings said it downgraded to A-plus from AA Glendale Water and Power's (GWP) $50.0 million water revenue bonds, series 2008.
The rating outlook remains negative.
The bonds are secured by a first lien on GWP's water system net revenues.
The rating downgrade reflects the utility's lack of liquidity and significant intra-fund borrowing from the city's electric fund to finance capital improvements.
The negative outlook reflects the narrow financial margins available to support
debt service in fiscal 2013.