Moody's Investors Service has downgraded to Baa3 from A3 the rating on the City of Reno, Nevada's Taxable Senior Lien Room Tax Revenue Refunding Bonds (ReTRAC-Reno Transportation Rail Access Corridor Project) Series 2006 outstanding in the amount of $8.1 million. The rating carries a negative outlook. The bonds are secured by a senior lien pledge on a dedicated 1% hotel room tax applied to all accommodations located within a 45 square block area within Reno's downtown. Bond proceeds were originally issued to partially prepay a ReTRAC project loan between the U.S. Department of Transportation (USDOT) and the city as well as fund various reserve accounts.
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