- Published: May 2012
- Region: United States
Summary: Compton, California; Appropriations
- Published: May 2011
- Region: California
- Standard & Poors
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Standard & Poor's Ratings Services lowered its underlying rating (SPUR) on Compton, Calif.'s lease-revenue bonds three notches to 'BBB-' from 'A-' based on Standard & Poor's assessment of the city's deficit spending through fiscals 2008 and 2010 with each year's deficit equivalent to roughly 20% of budget. The outlook is negative. These deficits caused the deterioration of, what we consider, the previously strong unreserved general fund balance position to a negative 18% of expenditures, or a negative $11.2 million, as of audited fiscal 2009. The negative outlook reflects our opinion of what we understand will be the city's continued negative general fund balance if the city does not make multiple cuts. In addition, management believes it will likely take several...
Companies mentioned in this report are: Compton
Action: Outlook: Negative
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