Standard&Poor's Ratings Services lowered its long-term rating and underlying rating (SPUR) to 'BBB+' from 'A-' on Palo Verde Community College District Facility Corp., Calif.'s certificates of participation (COP) issued for Palo Verde Community College District. The outlook is stable. The rating action reflects our view of the district's fiscal 2011 general fund deficit on an unaudited basis, which has cut its unreserved general fund balance to what we consider an adequate level from historically strong levels, and a transition in key management roles that heightens the challenges associated with implementing budget balancing actions for fiscal 2012. The 'BBB+' ratings further reflect our view of the district's: Shallow economic base with low per capita income; and Partial reliance on
