Standard & Poor's Ratings Services said it lowered its long-term rating to BB-plus from AA on the town of Lawrence, Wis.'s series 2008 general obligation promissory notes and series 2012 GO refunding bonds and placed the rating on CreditWatch with developing implications.
"The lowered rating reflects our recently becoming aware of the town's existing direct purchase debt, which in our opinion includes permissive events of default within the loan agreements that constitute a significant contingent liability risk," said Standard & Poor's credit analyst Michael Furla. "The CreditWatch developing placement reflects our view of the town's current attempt to renegotiate the existing terms within the bank loan agreements although it is unclear at this time if management will be successful in achieving these revisions."
