Printer Friendly

WARREN AND WASHINGTON COUNTIES IDA (NY) LOWERED TO 'BB' BY FITCH -- FITCH FINANCIAL WIRE --

 WARREN AND WASHINGTON COUNTIES IDA (NY) LOWERED TO 'BB' BY FITCH
 -- FITCH FINANCIAL WIRE --
 NEW YORK, July 14 /PRNewswire/ -- Warren and Washington Counties Industrial Development Agency, NY's Resource Recovery Revenue Bonds (Adirondack Resource Recovery Project) have been lowered to 'BB' from 'BBB(Conditional)' by Fitch. Although the project has been completed and is functioning as designed, several outstanding issues call into question the willingness of the counties to make required payments under the contracts which ultimately provide funds for bond repayment. The credit trend is changed to uncertain from stable.
 For the last few months, various resolutions have been passed indicating an unwillingness by the counties to make the required monthly contractual payments. Although the payments have eventually been made and funds have been flowing as required, the chronic bickering and questioning which has surrounded this project has recently escalated with Washington County entering a series of cross-claims into outstanding litigation.
 Although the validity and enforceability of the contracts is not being directly challenged by the county, it is essentially alleging that the contracts were entered into based on incomplete and/or inaccurate information. One of the key points of contention is the actual level of waste being produced by the counties and disposed of at the plant. Since the levels of waste are far less than projected, spot waste is being used to reach capacity, but payments have been required over and above those necessitated by the counties' own source waste.
 The legitimacy of these allegations is not clear, since it does not appear that flow control is being strictly enforced and since the counties were the source of the data on which the waste level projections were made. It is also too soon to know the reaction of the court and whether or not the cross-claims will be heard as part of ongoing litigation or severed and heard on a stand alone basis.
 Nevertheless, although all payments have been made to date, the situation is very unsettled and the risk to bondholders can now best be characterized as speculative.
 -0- 7/14/92
 /CONTACT: Colleen Woodell of Fitch, 212-908-0507/ CO: Warren and Washington Counties Industrial Development Agency ST: New York IN: SU: RTG


TM -- NY078 -- 9291 07/14/92 17:11 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jul 14, 1992
Words:374
Previous Article:STANDARD & POOR'S STOCK PRICE INDEX -- CLOSING, TUESDAY, JULY 14 /PRN/
Next Article:PUGET SOUND P&L $75 MIL. 7-7/8 PERCENT PREFERRED RATED 'BBB+' BY FITCH -- FITCH FINANCIAL WIRE --


Related Articles
WARREN & WASHINGTON I.D.A., N.Y. RATED 'BBB (COND.)' BY FITCH -- FITCH FINANCIAL WIRE --
PHOENIX IDA COLLATERALIZED LOC HOUSING BONDS LOWERED TO 'A-' BY FITCH -- FITCH FINANCIAL WIRE --
SUFFOLK COUNTY (N.Y.) $80 MILLION REVENUE ANTICIPATION NOTES RATED 'F-2' BY FITCH -- FITCH FINANCIAL WIRE --
SUFFOLK COUNTY N.Y. BOND ANTICIPATION NOTES RATED 'F-1' BY FITCH --FITCH FINANCIAL WIRE (FFW)--
WHITE PLAINS (NY) 'AAA' GO BONDS AFFIRMED BY FITCH --FITCH FINANCIAL WIRE--
UTICA (N.Y.) GENERAL OBLIGATION RATING REDUCED TO 'BB' BY FITCH -- FITCH FINANCIAL WIRE --
MONROE COUNTY (NY) 'AA-' GOs AFFIRMED BY FITCH -- FITCH FINANCIAL WIRE --
ONONDAGA CO. (N.Y.) GENERAL OBLIGATION BONDS RATED 'AA' BY FITCH -- FITCH FINANCIAL WIRE --
ERIE COUNTY (N.Y.) GENERAL OBLIGATION BONDS AFFIRMED AT 'A' BY FITCH -- FITCH FINANCIAL WIRE --
SOLID WASTE BOND RATINGS SECURE, FITCH SAYS -- FITCH FINANCIAL WIRE --

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters