...S&P Global Ratings revised its outlook on Sarasota County, Fla.'s capital improvement revenue bonds to negative from stable, and affirmed its '##+' long-term rating on the bonds. At the same time, S&P Global Ratings assigned its '##+' rating and negative outlook to the county's series 2020 capital improvement revenue bonds. The negative outlook reflects our view that there is at least a one-in-three chance of coverage falling from its currently very strong level of 4.0x maximum annual debt service (MADS) to closer to 3.0x MADS if the current recession has a prolonged effect on pledged revenues. Our outlook is generally for two years, but we see significant downside risks due to the U.S. recession over the next six-to-12 months. A lien and pledge on revenue from the county's share of the local government half-cent sales tax secure the bonds. The series 2020 bond proceeds will be used to fund, design, and construct the downtown cooling plant; make facilities energy conservation measures upgrades...
