City of Jackson
CUSIP 468473DS9
- Issue Currency: United States of America Dollars
- Announcement Date: 02-Nov-2018
- News: S&P Global Ratings lowered its long-term rating on Jackson, Miss.` water and sewer system revenue bonds outstanding to `BBB-` from `BBB`. At the same time, we removed the rating from CreditWatch, where it was placed with negative implications on Sept. 19, 2018. The outlook on all ratings is negative. ""The downgrade reflects the system`s adequate enterprise and financial risk assessments, as well as a series of events (discussed below) that has led to uncertainty for the next couple of fiscal years about coverage and liquidity,"" said S&P Global Ratings credit analyst Edward McGlade. In September 2018, the system needed to borrow $5.28 million from the general fund to meet then upcoming debt service requirements. Generally, in our opinion, this is a very bad thing for a system to do. The utility system got to this point because of a number of major factors, including: up to one-third of its customers not receiving bills, with some not seeing a bill for almost a year; a large number of winter emergencies involving main break repairs primarily caused by the poor condition of the distribution system; and management`s focus on filling vacant positions, which burned through whatever remaining liquidity the system had.
- Issue Currency: United States of America Dollars
- Announcement Date: 02-Nov-2018
- News: S&P Global Ratings lowered its long-term rating on Jackson, Miss.` water and sewer system revenue bonds outstanding to `BBB-` from `BBB`. At the same time, we removed the rating from CreditWatch, where it was placed with negative implications on Sept. 19, 2018. The outlook on all ratings is negative. ""The downgrade reflects the system`s adequate enterprise and financial risk assessments, as well as a series of events (discussed below) that has led to uncertainty for the next couple of fiscal years about coverage and liquidity,"" said S&P Global Ratings credit analyst Edward McGlade. In September 2018, the system needed to borrow $5.28 million from the general fund to meet then upcoming debt service requirements. Generally, in our opinion, this is a very bad thing for a system to do. The utility system got to this point because of a number of major factors, including: up to one-third of its customers not receiving bills, with some not seeing a bill for almost a year; a large number of winter emergencies involving main break repairs primarily caused by the poor condition of the distribution system; and management`s focus on filling vacant positions, which burned through whatever remaining liquidity the system had.
- Issue Currency: United States of America Dollars
- Announcement Date: 02-Nov-2018
- News: S&P Global Ratings lowered its long-term rating on Jackson, Miss.` water and sewer system revenue bonds outstanding to `BBB-` from `BBB`. At the same time, we removed the rating from CreditWatch, where it was placed with negative implications on Sept. 19, 2018. The outlook on all ratings is negative. ""The downgrade reflects the system`s adequate enterprise and financial risk assessments, as well as a series of events (discussed below) that has led to uncertainty for the next couple of fiscal years about coverage and liquidity,"" said S&P Global Ratings credit analyst Edward McGlade. In September 2018, the system needed to borrow $5.28 million from the general fund to meet then upcoming debt service requirements. Generally, in our opinion, this is a very bad thing for a system to do. The utility system got to this point because of a number of major factors, including: up to one-third of its customers not receiving bills, with some not seeing a bill for almost a year; a large number of winter emergencies involving main break repairs primarily caused by the poor condition of the distribution system; and management`s focus on filling vacant positions, which burned through whatever remaining liquidity the system had.
