NEW YORK - Moody's Investors Service said it has downgraded the rating on city of El Centro, Calif., sewer enterprise revenue bonds to A3 from A1, affecting $30 million in debt. The bonds are secured by the net revenues of the city's sewer enterprise system.
The rating action reflects the sewer enterprise's weak financial performance, moderate unrestricted reserve position, and the lagging regional economy.
The rating action also takes into account possible customer resistance to another substantial rate increase which may be needed to bolster operations.
Moody's said it also downgraded the rating on the El Centro’s water enterprise revenue bonds to A2 from A1, affecting $31 million in debt.