S&P cuts Ridgecrest Redevelopment Agency, Calif., COPs to BB-plus
Sept 25 (Reuters) - Standard & Poor's Ratings Services on Wednesday cut its rating on the certificates of participation of Ridgecrest Redevelopment Agency, California, to junk status, at BB-plus, down three notches from BBB-plus.
The outlook is stable.
S&P said the downgrade reflects a "going concern opinion" of the auditor in the city's fiscal 2012 audit, substantially weakened finances, and new local general obligation criteria.
"We do not expect to raise the rating over the outlook's two-year period since the city will likely maintain its limited budgetary flexibility," S&P said. "In addition, we do not expect to lower the rating further over the outlook's period due to management's efforts to stabilize the general fund and recent passage of a new sales tax, providing additional revenue."
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