SAN FRANCISCO (Standard&Poor's) Nov. 11, 2002--Standard&Poor's Ratings Services said today it lowered its underlying rating to 'A-' from 'A' on the Redlands Financing Authority, Calif.'s wastewater revenue bonds, issued for the City of Redlands, and placed the rating on CreditWatch with negative implications due to declining debt service coverage and high capital needs. The downgrade and CreditWatch placement affects about $17.7 million in wastewater revenue debt outstanding. "Debt service coverage has declined, and is expected to decline further unless long-overdue rate increases are finally implemented," said Standard&Poor's credit analyst Leo Carrillo. "The district's delay in raising rates it has meant a decline in its otherwise sound liquidity and debt service coverage in fiscal 2002.
