From the Birmingham News:
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.
Read the rest of the article here.
Editor's Note: Let this be a lesson to politicians who mortgage our children's future for their present political pleasure.
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