BRADENTON, Fla. - The negative watch placed on the Alabama Public School and College Authority by Standard & Poor's on March 27 is unwarranted, state finance director Jim Main said this week.

Standard & Poor's placed the AA rating on negative watch because of unresolved legal issues regarding a swap option with the APSCA that JPMorgan exercised last year. A payment is due May 1 on the swap option, which is on parity with the authority's debt, the agency said.

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