Summary: Phoenix Industrial Development Authority, Arizona; Solid Waste/Resource Recovery

Standard&Poor's Ratings Services has lowered its rating on the Phoenix Industrial Development Authority, Ariz.'s series 2013 solid waste disposal facilities revenue bonds to 'CCC' from 'BB+'. The rating remains on CreditWatch with developing implications. The downgrade reflects the prolonged and escalating legal dispute between the city of Glendale, Ariz, and Vieste SPE LLC, and Vieste Energy SPE LLC (collectively, Vieste), and the potential for a default on the bonds within the next 12 months. The bonds were issued in 2013 with proceeds loaned to Vieste Energy SPE LLC (the borrower) for the purpose of constructing and equipping a materials recovery facility in Glendale. We lowered the rating in December 2014, and again in April 2015, and also placed

...Standard & Poor's Ratings Services has lowered its rating on the Phoenix Industrial Development Authority, Ariz.'s series 2013 solid waste disposal facilities revenue bonds to '###' from '##+'. The rating remains on CreditWatch with developing implications. The downgrade reflects the prolonged and escalating legal dispute between the city of Glendale, Ariz, and Vieste SPE LLC, and Vieste Energy SPE LLC (collectively, Vieste), and the potential for a default on the bonds within the next 12 months. The bonds were issued in 2013 with proceeds loaned to Vieste Energy SPE LLC (the borrower) for the purpose of constructing and equipping a materials recovery facility in Glendale. We lowered the rating in December 2014, and again in April 2015, and also placed it on CreditWatch with developing implications at that time. The CreditWatch remains in place as there is the potential for both positive and negative credit events to occur within the next 90 days. The facility was completed in 2014, but...

Summary