Platte County has seen its credit scores plummet this month as it faces the prospect of defaulting on debt obligations used to finance the Zona Rosa shopping center.
Last month, the Platte County Commission discussed possibly skipping a scheduled December debt payment on the struggling Kansas City shopping center.
Ratings agencies caught wind of that conversation and have downgraded Zona Rosa’s bonds significantly. This month, Standard & Poor’s downgraded Zona Rosa bonds 10 notches, from A to B-. Moody’s lowered Platte County’s general obligation limited tax rating from Aa2 to Ba1, or from investment grade to “junk” status.
That could mean Platte County is forced to pay much higher interest rates in the future when it looks to issue certain types of debt.
Read more: Kansas City Star