Fitch Ratings has placed six Ohio port authority pooled loan programs on negative watch while it reviews the process used to rate them.
Fitch said it expects to "provide clarification" within the next few weeks on the process for assigning ratings to the programs, many of which are already rated below investment grade.
"Modifications to the analysis of the underlying participants in each of these pools is expected to result in an enhanced level of review requiring additional informational/disclosure requirements as well as the stipulation of additional basic parameters including those related to minimum borrower size," the rating agency said in a release.
It added that some of the bond funds are not expected to meet the new requirements and could be lowered as a result.
Affected are the Cleveland-Cuyahoga County Port Authority bond fund program, rated BBB-minus; the Toledo-Lucas County Port Authority's Northwest Ohio Bond Fund Program, rated BBB-minus; the Summit County Port Authority's bond fund, rated BBB-minus; the Lorain County Port Authority's bond fund, rated BBB-plus; the Columbus-Franklin County Finance Authority's Central Ohio Regional Bond Fund, rated BBB-plus; and the Dayton-Montgomery County Port Authority's Dayton Regional Bond Fund, rated BBB-plus.
