Bangkok--24 Feb--Standard & Poor's
Standard & Poor's Ratings Services lowered its underlying rating (SPUR) on Santa Fe, N.M.'s educational facilities refunding and improvement revenue bonds series 2006, issued for the College of Santa Fe, to 'C' from 'BB'. The outlook is stable. The bonds are insured by Radian (BBB+/A-2/Negative).
"The rating action reflects that the college has only sufficient money to pay debt service from the debt service reserve fund for the next six months," said Standard & Poor's credit analyst Carlotta Mills.
The college has paid its monthly debt service of about $111,473 from the debt service reserve fund since October 2008. Currently (as of Feb. 2, 2009) there is $1,038,736 left in the debt service reserve fund. The next principal payment of $585,000 is due Sept. 1, 2009.
The college has declared a financial emergency and will not have enough in the debt service reserve fund to pay the monthly debt service payments, including the Sept. 1 principal amount due.
Complete ratings information is available to RatingsDirect subscribers 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.
Media Contact:
Ana Sandoval, New York (1) 212-438-5095, [email protected]
Analyst Contacts:
Carlotta R Mills, San Francisco (1) 415-371-5020
Jessica Matsumori, San Francisco (1) 415-371-5083