Fort Wayne Muni Building Downgraded to Aa3 by Moody's

Moody's Investors Service said it has downgraded the rating on Fort Wayne Municipal Building Corporation, Ind.'s secured debt to Aa3 from Aa2.

The Aa3 rating applies to $55.5 million of outstanding debt.

The downgrade to the Aa3 rating on the City of Fort Wayne's $55.5 million of outstanding CEDIT secured debt reflects Moody's revised analytic approach for rating special tax supported debt.

The downgrade incorporates the debt's legal provisions, which are solid but do not include non-impairment provisions by the state of Indiana (long term issuer rating Aaa/ stable outlook) to not reduce, alter, or change the city's distributive share of Allen County's (rated Aa3/ stable outlook) CEDIT revenues, relatively modest maximum annual debt service coverage given historically volatile fluctuations in the amount of the city's distributive share of the pledge CEDIT revenues; a satisfactory debt service reserve, and the diversity and size of the tax base upon which the CEDIT revenues are generated that includes all of Allen County.

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