NEW YORK - Standard & Poor's Ratings Services said it lowered its rating to BBB- from BBB on $203.5 million of California Statewide Communities Development Authority's bonds issued for Front Porch due to the organization's substantial non-operating losses and stabilization of financial performance at a lower-than-expected level.
The outlook on the rating is stable.
The nonfarm payrolls report shows the economy is "hanging in there," though it is slowing, said Jeff MacDonald of Fiduciary Trust International.
Observers say a bankruptcy by Genera PR could complicate the PREPA bankruptcy.
Cities and states have until Aug. 1 to apply for the funds.
The U.S. economy added 139,000 jobs, a healthy clip that counters the president's calls for a rate cut to bolster the labor market.
The upshot of the report by Payden & Rygel's Travis McGahey is that the risk of severe credit deterioration and bond defaults remains low.
Notre Dame College in Ohio faces legal action on at least three fronts after defaulting on bond debt and a swap agreement and allegedly misusing donor funds.
