Moody's Investors Service last week placed its A1 rating on the village of Maywood on review for possible downgrade, a move analysts said was prompted by a lack of sufficient information about finances and operations.
Located outside Chicago in Cook County, the village has low average income levels and a relatively high debt burden, according to Moody's. Analysts warned that the suburb faces several fiscal and economic pressures that could lead to a downgrade.
Moody's also said it would downgrade or withdraw its rating on the credit if officials do not provide up-to-date financial information within the next 60 days.
Maywood has $32.5 million of outstanding general obligation debt.
In 2008 the village's total fund balance dwindled to $90,000. With $4.9 million reserved for other funds, the general fund's total unreserved fund balance totaled negative $4.8 million, or negative 23.9% of revenues, Moody's said.
"There is potential significant downward pressure on the current A1 rating due to a limited tax base, a lagging regional economy, and a large operating deficit in fiscal year 2008, resulting in negative undesignated, unreserved general fund balance," analyst Matthew Wong wrote in a recent report released on the village.
Moody's last rated Maywood in 2004, when it assigned an A3 rating to its unlimited-tax GO bonds. Earlier this year the agency changed the rating to A1 as part of a major recalibration of many of its municipal ratings.
