Cook County Forest Dist., Ill., Downgraded to A1 by Moody's

Moody's Investors Service said it has downgraded the rating on Cook County Forest Preserve District, Ill.'s general obligation debt to A1 from Aa2, affecting $187.95 million of debt.

The outlook is negative.

The downgrade of the GO rating reflects the district's growing pension liabilities, which are a consequence of statutorily mandated contribution levels that are not based on actuarial standards of the Forest Preserve District Employees' Annuity and Benefit Fund of Cook County.

The pension fund's actuarially determined annual required contributions (ARC) have increasingly exceeded actual employee and employer contributions to the pension fund.

The downgrade also reflects growing pressures on the district's tax base. The district shares much of its base with entities with significant and growing pension liabilities, including the city of Chicago (GO rated A3/negative outlook), which comprises roughly half of the district's base.

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