Standard & Poor's Ratings Services said it lowered its long-term rating to D from CC on the city of Vadnais Heights, Minn.'s series 2010A, B, and C annual appropriation lease revenue bonds, issued by the Vadnais Heights Economic Development Authority.

"The lowered rating reflects the city's principal payment default of $455,000 on Feb. 1, 2013," said Standard & Poor's credit analyst Caroline West. "The City of Vadnais Heights decided to not appropriate funds for its lease revenue bonds beginning in fiscal 2013, and we do not believe the city has any intention to appropriate funds in the future to pay debt service on the bonds," West added.

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