Standard and Poor's rating service put the city of Compton's lease revenue bonds on credit watch with negative implications Friday afternoon because of a lack of response to inquiries and allegations of fraud and "abuse of public moneys."
The city's leave revenue bonds, rated BB, could suffer additional penalties.
"Should we fail to receive sufficient independently audited financial information from the city, we could withdraw or suspend the ratings in accordance with our procedures for withdrawal or suspension," S&P said in a release.
