Sanwa Bank has rejected a request by the Philadelphia Water Department to extent an expiring letter of credit, leaving department officials scrambling for alternative credit enhancement.

About $88.5 million of outstanding notes are at stake. If another bank cannot be located to guarantee the notes, the issue could be converted to a fixed-rate mode early next year.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

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