Standard & Poor’s last week stripped the Xenia Rural Water District’s 2006 revenue bonds of their investment-grade standing, lowering them to BB from BBB, and warned of further action due to the district’s struggles to meet debt service.

The rating agency said the outlook is developing. “The downgrade reflects the district’s deteriorating financial position, which necessitates the use of the district’s debt-service reserve to sufficiently cover the system’s outstanding water debt,” wrote analyst Corey Friedman.

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