Standard & Poor's Ratings Services on Friday cut the underlying ratings on bankrupt Jefferson County, Ala., to D from C after the decision by the creditors' trustee, the Bank of New York Mellon, to suspend payment on Feb. 1, Reuters reported on Friday. Moody's Investors Service, which rates Jefferson County sewer warrants at Caa3 negative, said on Friday that the suspension of payments exposes the warrant holders to greater losses. The ratings agency plans to review the implication of the suspended payments on the current ratings. Out of the total $4.2 billion debt in Jefferson County's bankruptcy—the largest in the U.S. history—the biggest chunk is represented by $3.14 billion in sewer warrants.
