NEW YORK - Fitch Ratings said it has downgraded to D from BB the rating on the $9.43 million special assessment revenue bonds, Series 2007 (Town Square at Levis Commons special assessment project) of the Toledo-Lucas County Port Authority.
The bonds are special limited obligations payable by the issuer from special assessments levied on the assessment property by the city of Perrysburg (the city), in Wood County, Ohio (the county). A $1.3 million cash funded debt service reserve fund also supports the bonds.
The D rating indicates failure to make payment of principal and/or interest under the contractual terms of the rated obligation.
Fitch takes this action in response to the failure to pay the scheduled mandatory redemption of principal amount due on the bonds on November 1 and May 1, 2012.
While a $1.3 million cash-funded reserve is on deposit, the trustee declined to allow a draw on the reserve to allow the mandatory redemption payments to be made as scheduled. According to the trustee, all scheduled interest payments have been made to date from available special assessment funds.