Standard & Poor's Ratings Services said it lowered its long-term rating to A from AA-minus on the Clackamas River Water District, Ore.'s water revenue bonds. The outlook is stable.
"The lowered rating reflects our view of the district's declining financial performance in fiscal years 2011 and 2012," said Standard & Poor's credit analyst Robert Hannay. "Debt service coverage fell below 1.00x in 2011, as calculated by Standard & Poor's, and coverage will likely be below 1.00x in 2012 as well," Hannay added.
The district has adopted rate increases for 2013 and 2014, which the agency anticipates will lead to increased revenues and improved debt service coverage. These rate increases support the A rating and stable outlook.