Moody's downgrades Sierra Madre (CA) water revenue bonds to Ba1 from A3; rating placed on review for further downgrade

Posted on: December 12, 2013, 8:33 pm

NEW YORK, December 12, 2013 --Moody's Investors Service has downgraded to Ba1 from A3 the City of Sierra Madre (CA) water enterprise's 1998 Revenue Bonds, of which there is currently about $3 million outstanding. The enterprise has an additional $8.1 million in outstanding debt not rated by Moody's but considered in our analysis, including $6.75 million Series 2003 parity bonds. The 1998 bonds are secured by a senior lien on the net revenues of the water enterprise. Concurrently, we have placed the rating under review for possible further downgrade, pending the outcome of Proposition 218 rate increase process scheduled for late January 2014...

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