Standard & Poor's Ratings Services said it placed its BB long-term rating and underlying rating on Compton, Calif.'s lease revenue bonds on CreditWatch with negative implications.

"The CreditWatch placement reflects that the independent auditors of the city's recently released fiscal year 2011 audit declined to express an opinion on the financial statements," said Standard & Poor's credit analyst Matthew Reining. "The independent auditor wrote that due to allegations of waste, fraud, and abuse of public moneys, as well as a lack of city responses to the auditors' inquiries, that the scope of their work did not enable them to express an opinion," he continued.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.