Standard & Poor's Ratings Services said it lowered its rating three notches to BBB from A on Tunica County, Miss.'s general obligation debt and placed it on CreditWatch with negative implications.
"The downgrade is based on our view of the county's deteriorating financial position, reflected by its very weak budgetary flexibility and budgetary performance, as well as vulnerable financial management practices," said Standard & Poor's credit analyst Oscar Padilla. "The CreditWatch action follows repeated attempts by Standard & Poor's to obtain timely information of satisfactory quality to fully access our rating on the securities in accordance with our applicable criteria and policies."
The basis of the analysis is fiscal 2013, the county's latest available audited information. While the county has provided budgeted information for fiscal 2014, 2015, and 2016, the absence of audited information for fiscal 2014, following material financial deterioration in fiscal 2013, means there is insufficient information of quality to provide clarity on the county's fiscal position.
Failure to receive the requested information within 90 days will likely result in withdrawal of the affected rating, preceded by any change to the rating that it considers appropriate given available information.
The bonds are secured by the full faith and credit of the county, and the pledge of a direct and continuing tax to be levied annually without limitation as to rate or amount upon the taxable property within the limits of the county.
