Standard & Poor's Ratings Services said it lowered its underlying rating to A-minus from A-plus on Socorro, Texas' existing general obligation debt.
At the same time, Standard & Poor's assigned its A-minus long-term rating to the city's series 2014 combination tax and revenue certificates of obligation. The outlook on all the ratings is stable.
"The rating was lowered due to the city's lack of reporting, as cited in the city's fiscal 2012 audit, which prompted Standard & Poor's to revise the city's financial management assessment (FMA) score to 'vulnerable' from 'standard'," said Standard & Poor's credit analyst Sarah Smaardyk. "The rating is further constrained by our view of the city's weak economy and very weak budgetary performance," Smaardyk added.
Officials plan to use the series 2014 certificate proceeds to construct a community center.
Socorro has a population of approximately 32,013 and is located in western Texas, close to the Mexican border. While the city's economy has historically centered on agriculture, residents also have access to the broader employment base of El Paso, which is 16 miles northwest of the city.
