S&P dropped the Birmingham series A bonds from BB to B, andthe B and C bonds from B to CCC.

Holders of series B and C bonds are most at risk, because theyfall second in line to holders of series A bonds when the trusteemakes payments.

Dwindling debt reserve is among the several reasons forS&P's downgrade. S&P Credit Analyst Valerie White says "thetrustee drew on the debt service reserve funds to meet its January2002 payments to bondholders."

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