By Barnett Wright and Jeff Hansen
Birmingham News staff writers
Jefferson County told creditors in a filing Thursday night that it could offer no assurances it can meet its sewer debt obligations.
In two securities disclosure documents, the county said:
Soaring interest rates mean it may not be able to make payments on $3.2 billion in sewer bonds.
It may not be able to post $184 million in collateral required when credit-rating agencies lowered the grade for its interest-rate swap agreements.
Its sewer debt service reserve fund was now underfunded because of the credit downgrade, and the county could not guarantee it could properly fund or insure it.
The credit rating for $1 billion in school construction bonds, backed by a 1 percent countywide sales tax, had been downgraded from AAA to AA by Fitch Ratings Ltd., one of three major credit-rating agencies.
(Read the full post about ‘County issues warning on debt’…)