Moody's downgrades to Aa3 Rockford Park District's (IL) outstanding GOULT

Posted on: May 9, 2014, 7:37 pm

NEW YORK, May 09, 2014 --Moody's Investors Service has downgraded to Aa3 from Aa2 on Rockford Park District's (IL) General Obligation Unlimited Tax (GOULT) rating. The outstanding general obligation unlimited tax bonds are secured by the district's authorization to levy a property tax that is unlimited as to rate or amount to pay debt service. Concurrently, Moody's has assigned a MIG 1 rating to the district's $5.3 million Taxable General Obligation Limited Tax Park Bonds, Series 2014. The Series 2014 bonds mature in one year on December 15, 2015 and are secured by the district's general obligation limited tax (GOLT) pledge. The security pledge on the Series 2014 bonds is limited by the amount of the district's debt service extension base (DSEB), which provides sufficient coverage. However, the bonds benefit from an unlimited rate, therefore the current bonds are rated on parity with the district's general obligation unlimited tax pledge. The district has $10.0 million in GOULT and $10.6 million in GOLT outstanding, post-sale...

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