Standard & Poor's Ratings Services said it lowered its rating on St. Johns, Mich.'s water supply and sewage disposal system revenue bonds to A-minus from A.
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The outlook is stable.
"The downgrade reflects our opinion of the utility's volatile and declining debt service coverage (DSC)," said Standard & Poor's credit analyst Gregory Dziubinski.
"Factors supporting the rating include our view of the utility's at least adequate financial performance," he added. Other factors include its stable overall customer base and limited additional capital needs.
