NEW YORK - Moody's Investors Service has assigned a negative outlook and removes from Watchlist for possible downgrade, the Metropolitan Government of Nashville and Davidson County, Tenn.'s water and sewer enterprise debt.
The bonds are secured by the net revenues of the system. Removal from Watchlist for possible downgrade and assignment of the negative outlook affects $372.49 million in outstanding debt and is based upon significant damage to Metro Nashville's water and sewer facilities due to severe flooding on May 1 and 2, 2010, which could place near-term strain on system revenues.
Removal from Watchlist for possible downgrade was the result of new legislation passed by Congress, increasing the amount of flood-related reconstruction funding provided to Metro to 90% (previously 75%).
