BRADENTON, Fla. - Standard & Poor’s late Tuesday lowered its underlying rating on Jefferson County, Ala.’s Series 2003B-2 through 2003B-7 sewer revenue refunding warrants to D from CCC due to failure of the county to make a principal payment on the warrants on April 1 in accordance with the terms of the standby warrant purchase agreements, which are under an accelerated amortization schedule because of bond insurer downgrades.

The county entered into forebearance agreements deferring until April 15 the first principal payment of $53 million owed under the sewer system’s standby bond purchase agreements,. The forebearance agreements allowed Jefferson County on April 1 to make only an interest payment, which was approximately $4.2 million.

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