Bexar Met bond debt place on Rating Watch Negative
Fitch Places Bexar Met Water District, Texas on Rating Watch Negative
- Fitch has placed the revenue bond debt of Bexar Metropolitan Water District, Texas on Rating Watch Negative. This action affects the following series of bonds that Fitch presently rates ‘A-’:
–Series 1995 ($830,000 outstanding)
–Series 1998 ($56.6 million outstanding)
–Series 2002 ($28.5 million outstanding)
–Series 2006 ($53.1 million outstanding)
Fitch takes this action in
response to the recent disclosure by the district that revenues from its water utility during fiscal 2008 have been insufficient to meet the bond covenant requirement that it deposit approximately equal amounts monthly into the debt service fund in order to pay annual debt service costs. To make its May 1, 2008 debt service payment and to replenish reserves, the district has secured a $10 million loan from Bank of America. This occurrence represents a technical default of its bond covenants, although the district reports that it has not missed any regularly scheduled debt service payments during fiscal 2008.
Expect some major increases.
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