Moody's Investor's Service said it downgraded to A1 from Aa3 $50.9 million in previously issued Reno, Nev., general obligation (limited tax) bonds, $23.5 million in GOLT/revenue bonds, $5.2 million in GOLT medium-term bonds, and $9.6 million of assessment bonds backed by the city's GOLT pledge.
Moody's has assigned an A1 rating to the city's general obligation (limited tax) capital improvement refunding bonds (additionally secured by pledged revenues) Series 2013A, general obligation (limited tax) medium term various purpose bonds Series 2013B, and general obligation (limited tax) building refunding bonds (additionally secured by pledged revenues) Series 2013C.
The bonds are secured by the full faith and credit of the city within the constitutional and statutory limitations of the city's operating levy. GOLT/revenue bonds are additionally secured by a pledge of net revenues from various city enterprise systems.
With this downgrade, Moody's has revised the outlook on the city's GOLT ratings to stable from negative.
The downgrade to A1 reflects a still weak financial position compared to similarly sized cities nationally featuring chronically low general fund reserve levels and an above average reliance on economically sensitive revenues.
The revision of the outlook to stable from negative reflects the view the city will continue its efforts to improve reserve levels albeit at a slow pace and also takes into account the city's large economy that is in the beginning stages of recovery.
