Glendale Water, Calif., 2008 Revs Downgraded to A-Plus by Fitch

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.

For reprint and licensing requests for this article, click here.
MORE FROM BOND BUYER