Standard & Poor's Ratings Services said it lowered its long-term rating and underlying rating on Homewood-Flossmoor Park District, Ill.'s general obligation debt three notches to BBB-plus from A-plus.
The outlook is negative.
"We lowered the ratings three notches because of the persistent deficits," said Standard & Poor's credit analyst Anna Uboytseva. "The downgrade reflects our view of the district's persistent structural imbalance and low general fund cash reserves at the end of fiscal 2015."
The negative outlook reflects Standard & Poor's view of the district's recent and projected operating imbalances, coupled with the lack of revenue-raising flexibility, the ongoing general fund subsidies of the golf course, and declining property tax revenues.
Homewood-Flossmoor Park District serves the villages of Homewood and Flossmoor in Cook County, about 25 miles south of downtown Chicago.
