Moody's downgrades Salt Verde Financial

Moody's Investors Service said it downgraded the long-term rating of Salt Verde Financial Corp.'s gas revenue bonds, series 2007, to Ba3 from Ba1.

The downgrades are due to the downgrade of MBIA Inc.'s senior unsecured rating.

The rating on the subordinate-lien bonds considers the credit quality of Citigroup Inc. as guarantor under the gas purchase agreement, the credit quality of Royal Bank of Canada as guarantor under the commodity swap, the credit quality of Salt River Agricultural Improvement & Power District in Arizona as the sole participant in the transaction, the credit quality of American General Life Insurance Co. as provider of a guaranteed investment agreement for the debt-service fund and the credit quality of MBIA as provider of a guaranteed investment agreement for the debt service reserve fund, Moody's said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.