Arts Bonds on Watch

Fitch Ratings last week placed on rating watch negative the A rating on approximately $187.6 million of outstanding variable-rate revenue bonds issued for the Robert W. Woodruff Arts Center Inc.

Fitch said the watch primarily reflected the credit risk Woodruff faces due to the need to extend four of the five liquidity agreements supporting the debt.

"In Fitch's view, the ability to extend all four agreements in a timely manner will be challenging in light of the current credit environment," the agency said, noting that Woodruff officials have said they plan to refund all the debt before the liquidity agreements expire on Sept. 30.

Fitch in February downgraded the nonprofit downtown Atlanta art center's underlying rating to A from AA-minus based on operating losses and declining liquidity.

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