Moody's Investors Service said it has downgraded to A2 from A1 the rating on the city of Kirtland, Ohio's outstanding general obligation limited tax debt.
Debt service on the city's rated bonds is secured by the city's pledge and authorization to levy a tax within the state of Ohio's (Aa1 stable) statutory ten-mill limitation.
The A2 rating primarily reflects the city's historically narrow financial position which has further narrowed over the past two years.
The rating also incorporates the city's modestly sized tax base located in the eastern suburbs of the city of Cleveland (A1/stable), well above average socioeconomic profile, modest debt burden with aggressive payout, and exposure to unfunded pension liabilities of two underfunded cost-sharing retirement systems.
