Jefferson County's sewer-bond credit rating was cut to junk status Friday, increasing the odds of the largest bankruptcy filing ever by a governmental body.
Standard & Poor's, which ranks the creditworthiness of borrowers, downgraded the sewer rating to junk level, citing uncertainty that the county can make debt payments to lenders such as pension plans and money managers who bought bonds. The sewer-bond rating was cut six levels to B, five levels below investment grade, from BBB.
The downgrade intensifies pressure on the county's finances and makes it possible for creditors to demand payment on $341 million of investment contracts called swaps.
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