SAN FRANCISCO — The Asian Art Museum in San Francisco faces a deepening financial crisis as its bond rating has been downgraded to junk due to accelerated payments on $120 million of debt.

Moody's Investors Service dropped the Asian Art Museum Foundation's underlying rating to Ba1 from Baa1 as its letter of credit from JPMorgan Chase & Co. was set to expire Tuesday. The expiration was expected to force the bank to make a mandatory tender offer to the foundation's bondholders Monday, triggering accelerated payments of possibly $30 million annually on the outstanding variable-rate revenue bonds, Moody's analyst Diane Viacava said in a note Friday.

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