CHICAGO — Standard & Poor’s Thursday downgraded the already junk-bond rated Xenia Rural Water District in Iowa to D from BB after it failed to make its full June debt-service payment on $83 million of outstanding bonds from a 2006 issue.

The district drained its debt service reserve to make all but $69,000 of the $1.88 million interest payment owed in June. A request to cover the shortfall has been submitted to CIFG Assurance North America Inc., which insures the bonds.

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