S&P puts debt for Hercules, Calif. 'BB' rating on watch negative
Oct 3 (Reuters) - Standard & Poor's Ratings Services said it has placed the 'BB' rating of some Hercules Public Financing Authority, Calif. revenue bonds on CreditWatch with negative implications, citing the uncertainty over the city's willingness to repay some debt. "The CreditWatch placement reflects our uncertainty surrounding the city's willingness to pay its obligations after the city's statement in a September 25, 2012 material event notice" said S&P on Tuesday. The rating agency placed on credit watch with negative implication the 2010 electric system project revenue bonds, series 2012 electric system project revenue refunding bonds, series 2003B lease revenue bonds and series 2009 taxable lease revenue bonds issued for the city of Hercules. The debt service payments of these bonds are secured by a city covenant to advance funds to cover the net electric system revenue. The city said in its material event notice, it "does not anticipate there will any available funds to make such advances in the foreseeable future and does not expect to make any such advances."
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