Hazel Crest, Ill., Downgraded to A1 by Moody's

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.

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