Friday, May 29, 2009
Fitch Withdraws A+ Rating On Waterworks Bonds
Fitch Ratings assigned an A+ rating to two series of bonds the Indianapolis Bond Bank planned to issue earlier this month in the denominations of $51.2 million and $49 million, respectively, for waterworks projects. Fitch withdrew its rating after the Bond Bank decided to postpone the bond sale. Fitch's ratings for $842.5 million in outstanding water company bonds affirmed on April 23, 2009 remains unchanged. Bond ratings for the Indianapolis Water Company's indebtedness have been downgraded over the past year as its financial situation has drastically deteriorated, particularly due to the disproportionate share of variable rate bonds it had issued. The water company is now converting those bonds to long-term fixed rate bonds at a substantial penalty.