LOS ANGELES --A ratings downgrade on Huntington Beach, Calif.'s $32.4 million of outstanding tax allocation bonds was triggered this week when it was disclosed that tax increment revenues in a troubled redevelopment project will fall $89,000 short of debt service requirements this year.

Moody's Investors Service lowered its rating on the bonds to a speculative-grade Ba on Tuesday, marking the first time it has assigned a below investment-grade rating to a California tax allocation bond, Moody's assistant vice president Ronald L. Junker said.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.