Glendale, AZ Subordinate-Lien Water And Sewer Revenue Bond Rating Lowered To 'AA-' On Application Of Criteria

CENTENNIAL (S&P Global Ratings) Dec. 10, 2018--S&P Global Ratings lowered its long-term rating to 'AA-' from 'AA' on Glendale, Ariz.'s outstanding subordinate-lien water and sewer revenue bonds. At the same time, S&P Global Ratings affirmed its 'AA' long-term rating on the city's outstanding senior water and sewer revenue bonds. The outlook is stable. The lowered rating on the subordinate-lien obligation reflects the application of our Assigning Issue Credit Ratings Of Operating Entities criteria, published May 20, 2015, on RatingsDirect. "This reflects our view that the subordinate-lien bond holders are materially disadvantaged compared to the senior lien bond holders, given the senior lien is open and the subordinate-lien obligations represent about 13% of total debt outstanding," said S&P Global Ratings credit

...CENTENNIAL (S&P Global Ratings) Dec. 10, 2018--S&P Global Ratings lowered its long-term rating to '##-' from '##' on Glendale, Ariz.'s outstanding subordinate-lien water and sewer revenue bonds. At the same time, S&P Global Ratings affirmed its '##' long-term rating on the city's outstanding senior water and sewer revenue bonds. The outlook is stable. The lowered rating on the subordinate-lien obligation reflects the application of our Assigning Issue Credit Ratings Of Operating Entities criteria, published May 20, 2015, on RatingsDirect. "This reflects our view that the subordinate-lien bond holders are materially disadvantaged compared to the senior lien bond holders, given the senior lien is open and the subordinate-lien obligations represent about 13% of total debt outstanding," said S&P Global Ratings credit analyst Alexandra Rozgonyi. The ratings are based on our view of a very strong enterprise risk profile and a very strong financial risk profile. The enterprise risk profile reflects...

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