Jefferson County has suffered due to the most recent downgrade of XL Capital Assurance Inc., according to a material event notice filed Monday through Digital Assurance Certification LLC.

According to the notice concerning the county’s troubled $3.2 billion of sewer warrants — most of which is in variable- and auction-rate modes — XL Capital’s recent downgrades have disqualified the use of a nearly $165 million surety bond supporting a portion of the outstanding warrants.

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