California county's waste facility COPs cut two notches by S&P

SAN FRANCISCO Tue Aug 27, 2013 6:41pm EDT

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SAN FRANCISCO Aug 27 (Reuters) - Citing weaker finances amid reduced waste flow, Standard & Poor's Ratings Services on Tuesday lowered its rating on San Joaquin County, California's 2003 certificates of participation, issued for its Solid Waste System Facilities Project, to 'BBB-plus' from 'A.'

Revenue from the county's solid waste system secures the debt, S&P said in a statement, adding that its outlook for the bonds is stable.

The two-notch downgrade "reflects our view of the solid waste system's weakened financial profile," S&P credit analyst Paula Costa said in the statement, adding that the stable outlook "reflects our expectation that the recent improvement in tonnage will enable system operations to support debt obligations while sustaining good liquidity."

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