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 Redlands Financing Authority, Calif.'s series 1999A water revenue bonds, issued for the City of Redlands, and placed the rating on CreditWatch with negative implications, based on declining debt service coverage and high capital needs. "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 has meant a decline in its otherwise sound liquidity and debt service coverage in fiscal 2002. The timeliness and adequacy of rate increases are essential to stabilizing the long-term rating
