Bangkok--13 Jan--Standard & Poor's
Standard & Poor's Ratings Services placed its 'A-' underlying rating (SPUR) on Galveston, Texas' waterworks and water system bonds on CreditWatch with negative implications in response to recently disclosed information released by the city in relation to the effects of Hurricane Ike on Galveston.
While the exact long-term effects the hurricane will have on the local economy, and consequently on government revenues and short-term cash flows, are unknown at this time, it is anticipated that some tourism and sales tax revenues will be lost. In addition, any loss of the tax and employment bases due to the island's shore being washed away may also strain the city and its tax collections.
Complete ratings information is available to subscribers of RatingsDirect, the real-time Web-based source for Standard & Poor's credit ratings, research, and risk analysis, at www.ratingsdirect.com. All ratings affected by this rating action can be found on Standard & Poor's public Web site at www.standardandpoors.com; select your preferred country or region, then Ratings in the left navigation bar, followed by Find a Rating.
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Edward Sweeney, New York (1) 212-438-6643,
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Analyst Contacts:
Kate Choban, Dallas (1) 214-871-1420
Paul Jasin, Dallas (1) 214-871-1424
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