S&P: Royal Oak, MI GO Rating Placed On CreditWatch Negative On Late Interest Rate Payment
Royal Oak missed an interest rate payment for its series 2007 capital improvement energy conservation bonds as a result of what we understand was a clerical error. The payment was due on Monday, Aug. 1, 2016. Royal Oak's management made the payment on Tuesday, Aug. 2, 2016, one business day late.
"Although we note Royal Oak is current with all payments, the CreditWatch listing reflects our potentially changed view of management's practices, internal controls, liquidity, and finances," said S&P Global Ratings credit analyst Kathryn Clayton.
"If we discover Royal Oak's management practices have significantly weakened or that a decline in internal controls, flexibility, or liquidity has contributed to the interest payment delinquency, we could lower the rating or revise the outlook to negative," Ms. Clayton added.
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