Moody's Investors Service said it has assigned an A2 rating to the village of North Riverside, Ill.'s $7.1 million debt certificates, Series 2013, and downgraded to A2 from A1 the rating on previously issued debt certificates and assigned an A1 issuer rating.
Post-sale the village will have $10.0 million of outstanding debt certificates.
The Series 2013 debt certificates are secured by the village's limited obligation general obligation pledge and do not benefit from a dedicated tax levy.
Proceeds from the certificates will be used to finance a portion of the cost of the acquisition of land located in an Illinois Business District intended to be used in connection with the development of a Costco store.
The A1 issuer rating reflects the village's moderately-sized tax base with declining valuation trends and substantial tax payer concentration; a satisfactory financial position but reduced future financial flexibility due to upcoming debt service and pension payments; and an average debt burden.
The rating distinction between the village's issuer rating and the certificates reflects the weaker security of the certificates, which do not benefit from a dedicated tax levy.