West Texas County To Vote On Funding Nuke Site

Valhi in late March had its credit rating lowered to CCC, down two notches from a B-minus rating in February, and with a negative outlook, according to a Standard & Poor's report.

"Clearly we see indicators moving in the wrong direction," said Henry Fukuchi, a financial analyst with Standard & Poor's.

Andrews County officials are currently working on a proposal with the company that would provide protection to taxpayers. The company is offering to annually place in escrow a year's worth of principal and interest — about $6.6 million in the first year, and 100 percent of Waste Control's stock and $75 million Valhi Inc.'s stock as collateral.

Waste Control is paying the cost to set up the issuance, which is being handled by First Southwest Company.

The county also would hold title to Waste Control's property, and Valhi's parent company, Valhi Holdings Company, is providing a financial guarantee to the county.

"That's as strong a package of assurances we can come up with," McDonald said. "It's our task to make it clear to people what we're asking the county for is to take advantage of their credit rating and that they'll be paid back."