Brentwood, Mo., COPs Downgraded to A1 by Moody's

Moody's Investors Service said it has downgraded the rating on the city of Brentwood, Mo.'s outstanding certificates of participation to A1 from Aa3.

The city has $8.0 million in outstanding certificates of participation. The city has no outstanding general obligation debt.

The downgrade to A1 from Aa3 reflects the city's weakened financial position due to financial challenges over the last 3-5 years despite a recent operating surplus.

The A1 rating on the certificates of participation also reflects the risk of non-appropriation and the essentiality of the pledged assets (real estate and improvements for city hall, library, and fire station) as well as the city's moderately sized tax base and high socioeconomic indices; modest general fund reserves; and low net direct debt burden.

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