Standard & Poor's Ratings Services said has removed its A long-term rating on Citronelle, Ala.'s general obligation debt from CreditWatch, where it had been placed with negative implications March 14, 2014, and has simultaneously suspended the rating.
The rating suspension reflects Citronelle's failure to supply the rating agency with the timely information of satisfactory quality, in accordance with its policies.
Munis are entering a negative feedback loop, according to J.P. Morgan analysts led by Peter DeGroot.
Credit ratings for California utilities could face downward pressure as recurring wildfire risks test safety funds and strain balance sheets.
"In a few years, Brightline may have to consider going through something like this again," warned one investor.
Bondholders and Assured Guaranty are providing substantial funding in post-petition and post-bankruptcy packages to keep the project operating.
GASB has issued updated questions and answers designed to clarify how subsidies relate to operating revenue, an important distinction affecting higher education, and transportation entities.
Ahead of a refinancing next week and a new money deal next month, Chicago's spreads have widened, suggesting the market may be pricing in a downgrade, analysts said.
