LOS ANGELES — Moody's Investors Service placed on review for downgrade the Aa3 rating of Central Basin Municipal Water District, Calif. certificates of participation, Series 2010A, and adjustable rate refunding certificates of participation, Series 2008B.

The Aug. 17 action affects $48.4 million of outstanding debt.

Moody's cited several factors for the placing the COPs on review for downgrade including: low debt service coverage levels; changes in management resulting in changes to the previously discussed outlook and long range plans; and lack of information regarding future year financial projections.

"Management has indicated that data is currently in process and will be available shortly," Moody's analysts said. "If the requested information is not received, we will take appropriate rating action, which could include the withdrawal or change of the Aa3 rating."

Covering about 200 miles of southeast Los Angeles County, Central Basin Municipal Water District has an estimated population of more than 2 million people.

The service area is mostly built out but its population continues to grow. The Metropolitan Water District of Southern California, the the predominant water source for southern California is the district's primary source of water supply. Reliance on MWD exposes the district to challenging statewide and regional water supply issues, according to Moody's report.

A senior lien on the district's net water revenue secures the district's certificates.

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