Standard & Poor’s said it has lowered its rating on Portage, Mich.’s public utility revenue bonds Series 2005 to A from A-plus, citing the systems’ low cash balances, which management projects will decrease to a negative $3 million by the end of fiscal 2010, and to the city’s insufficient debt service coverage.

Though senior-lien debt service coverage is strong, coverage of all debt service being paid from system revenues, including junior-lien and general obligation debt, has been significantly below 1x for the past three years, and is projected to remain below 1x for fiscal 2010. The rating is stable.

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