Search
 

Anaheim Placed on S&P Credit Watch List

ANAHEIM, CA-Standard & Poor's says sudden drop in travel to this tourism Mecca could jeopardize the city's ability to pay municipal bondholders. Move is latest sign that impact of last month's terrorist attacks is rippling across nation's economy.

By David W. Myers | Updated on October 04, 2001

ANAHEIM, CA-Debt-rating giant Standard & Poor’s has put this tourism Mecca’s debt on its “credit watch” list, the latest sign that last month’s terrorist attacks on the East Coast are having a ripple effect across the nation’s economy.

Attendance at Disneyland and other once-popular Anaheim venues has dropped sharply over the past few weeks, as business and leisure travelers alike cancel their planned trips in the wake of the Sept. 11 attacks. Consultants at Ernst & Young’s Hospitality Group earlier this week said the city’s hotel-occupancy rate has been cut nearly in half, to a mere 42%.

About 54% of Anaheim’s general-fund revenue, which was expected to reach $178.3 million this year, comes from sales and hotel-bed taxes. Anaheim and other cities that depend heavily on tourism-related revenue to finance their operations could face budget shortfalls if travel doesn’t pick up soon, New York-based S&P says, which in turn could jeopardize their ability to make payments to municipal bondholders.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.