S&P; May Cut Cadiz Unit’s Credit Rating

By Michael Hiltzik

Oct. 12, 2002 12 AM PT

AGRICULTURE

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Standard & Poor’s said it was placing the secured debt for the Cadiz subsidiary Sun World International, an agricultural company, on credit watch with “negative implications.” The rating covers $115 million in notes secured by Sun World landholdings and other property.

The announcement comes in the wake of the Metropolitan Water District’s cancellation of its joint $150-million water storage project with Cadiz Inc. The credit-rating firm said that although Sun World has sufficient resources to make a $7-million interest payment due Oct. 15, the unit faces “near-term refinancing risk” because a one-year revolving loan matures next month.

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Michael Hiltzik

Pulitzer Prize-winning journalist Michael Hiltzik has written for the Los Angeles Times for more than 40 years. His business column appears in print every Sunday and Wednesday, and occasionally on other days. Hiltzik and colleague Chuck Philips shared the 1999 Pulitzer Prize for articles exposing corruption in the entertainment industry. His seventh book, “Iron Empires: Robber Barons, Railroads, and the Making of Modern America,” was published in 2020. His forthcoming book, “The Golden State,” is a history of California. Follow him on Twitter at twitter.com/hiltzikm and on Facebook at facebook.com/hiltzik.

S&P; May Cut Cadiz Unit’s Credit Rating

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