Moody's Investors Service said it has downgraded to A1 from Aa3 the village of Hazel Crest, Ill.'s general obligation unlimited tax debt.
The A1 rating applies to $1.4 million of outstanding GO debt.
The city's general obligation bonds are secured by the city's general obligation unlimited tax pledge, which includes a property tax levy that is unlimited as to rate or amount for the repayment of debt service.
The downgrade to the A1 rating reflects the a small suburban tax base that experienced significant valuation declines in levy year 2011, coupled with a weakening socio-economic demographic profile; stabilization of the general fund and enterprise operations following four years of pressured operations; and a high overall debt burden with an above-average repayment schedule for the village's direct debt.