Standard & Poor's last week downgraded West New York, N.J., to BBB-minus from BBB and placed the credit on negative watch as officials work to secure New Jersey's guaranty on a potential $11 million June bond sale.

The rating change reflects the city's limited liquidity and a $64 million budget for fiscal 2008, which ends June 30, that the state still has yet to approve. The current fiscal plan relies upon an upcoming $7.8 million sale of a public works building that West New York officials anticipate will close in the next 30 to 45 days.

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