Global bond rating agency Standard and Poor’s has lowered the borrowing rate for the newly-created Central Alabama Water system.Concerns about the public utility’s weakening liquidity, aging assets and substantial reorganization of management cited as some of the reasons.Earlier this week, the “CAW’s” long-term rating was downgraded from Double-A to Double-A minus.S&P also warned of further cuts within 90 days, if financial transparency is not improved.
Governor Kay Ivey signed the bill that would take control of the water board from the city of Birmingham and moved it to the suburbs and the Governor’s office. Critics complained that the move was racist, since the city was mostly black and the suburbs were mostly white. Birmingham Mayor Randall Woodfin sued over the plan, but a federal judge ruled against an injunction. The move changed the name of the panel from the Birmingham Water Works to the Central Alabama Water board.
The state Senate voted unanimously last year to pass the bill, and the House of Representatives approved it along party lines…