Sweetwater’s Credit Rating Downgraded Days Before Voters Will Decide on New Bond Measure
“Conceivably they paid less [in interest] but it would probably be a very small amount,” said Matt Fabian, who researches municipal bond markets for Municipal Market Analytics. Bond investors don’t pay a great deal of attention to the underlying rating of California school districts when it comes to taxpayer-backed bonds, he said. That’s because, legally, tax money for construction bonds goes straight from homeowners to the county and into investors’ pockets. Because of California’s laws, investors and credit rating agencies see their bond investments as virtually untouchable regardless of a district’s credit rating, he said.