Standard & Poor's Ratings Services said it lowered its underlying rating to CCC from BBB on Madison County, Miss.'s series 2005 special assessment bonds, issued by Parkway East Public Improvement District, and removed the rating from CreditWatch with negative implications.
The outlook is negative.
"The lowered ratings reflect our view that the lack shortfall of pledged revenues, combined with the county's lack of willingness to contribute toward deficiencies in revenues, could lead to a furthering downgrade of the rating, or a potential default, within the next year," said Standard & Poor's credit analyst Kate Choban.
Madison County's credit characteristics include: very strong budget flexibility; a strong economy and institutional framework; adequate liquidity, with potentially limited access to external liquidity based on the rating downgrade; weak budget performance, and very weak debt and management, with an unwillingness to support the current debt obligations of Parkway East Public Improvement District, of which the county is the obligor.
