Moody's Investors Service said it has downgraded to A3 from Aa3 the County of Jackson, Miss.'s general obligation unlimited tax bonds.
Concurrently, it placed the rating under review for further possible downgrade.
The downgrade to A3 reflects the county's sizeable contingent liability from the Singing River Health System (SRHS)'s large debt and pension liabilities, as well as the county's weak financial disclosure practices. Factors supporting the A3 rating includes the county's stable tax base, low debt burden, and strong financial position. The rating also considers the county's high taxpayer concentration, with the top 10 taxpayers accounting for over 50% of property value.
The review for downgrade reflects the potential additional financial risk associated with SRHS and the county's other component units, including the Jackson-George Regional Library System, the Jackson County Port Authority, the St. Andrews Fire District, the West Jackson County Utility District, and the Jackson County Emergency Communications District. During the review Moody's will assess the county's exposure these entities. Failure of the county to provide financial statements and other documentation associated with its component units could lead to a withdrawal of the rating due to lack of sufficient information.
