DALLAS - Rating analysts have placed $1.23 billion of prepaid gas bonds from Salt Verde Financial Corp. on watch for possible downgrade based on the credit rating of counterparty Citigroup.

The moves by Standard & Poor's and Moody's Investors Service follows a series of downgrades on prepaid gas deals involving bankrupt Lehman Brothers and watch list status for deals backed by Merrill Lynch & Co., expected to be acquired by Bank of America Corp. by the end of the year.

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