CHICAGO (Standard&Poor's) April 27, 2011--Standard&Poor's Ratings Services has lowered its long-term rating on the Village of Holly, Mich.'s series 2004 wastewater revenue bonds to 'BBB+' from 'A'. The outlook is stable. The downgrade and 'BBB+' rating reflect the following characteristics: Inconsistent financial performance; Net revenues that provided debt service coverage only on revenue bonds (which are senior to general obligation wastewater bonds that the system is also supporting) and of only 0.3x in 2009, although it increased to 1.4x in 2010; Virtually no unrestricted cash or investments available on fiscal year-end June 30, 2010; and Rates Standard&Poor's considers high. Supporting the rating, despite these weaknesses, are ongoing rate increases that have been implemented and
