Standard & Poor's revised its outlook for Wilkes-Barre, Pa.'s general obligation bonds downward to stable from positive while affirming its A-minus rating.
S&P cited weaker liquidity for the 41,000-population seat of Luzerne County in northeast Pennsylvania.
"The outlook change reflects a weakening of the city's liquidity factor score to adequate from very strong due to a reduction in fiscal 2014 unrestricted governmental fund cash," said S&P credit analyst Hilary Sutton. "While we do not believe there is an immediate liquidity threat, we do believe the weakened factor score indicates greater susceptibility to negative credit events."
S&P also assigned its A-minus long-term rating to Wilkes-Barre's Series 2016 GO notes and its AA-plus/A-1 rating on the city's Series 2008C variable-rate demand bonds, which a PNC Bank letter of credit facility supports.
