Standard & Poor’s downgraded its underlying rating on the Oxnard Financing Authority’s wastewater revenue bonds four notches to BBB from A-plus. The Dec. 29 action affects $138.9 million of outstanding debt secured by net revenues of Oxnard’s wastewater system.

“The lowered rating reflects our view of the wastewater system’s multiple breaches of what we consider a weak rate covenant, reliance on one-time revenues to generate adequate coverage in recent years, and upcoming capital improvement plans that will require additional borrowing and substantial rate increases,” Standard & Poor’s credit analyst Tim Tung said in a news release. The outlook is stable.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.