Moody's Investors Service said it has downgraded the village of Oak Park, Ill.'s general obligation rating and sales tax revenue rating to A1 from Aa3 affecting $85 million in rated debt.
The downgrade to A1 reflects the village's elevated and growing pension liabilities.
The A1 rating also incorporates the village's sizable tax base and affluent demographic profile; somewhat limited reserve position and available liquidity; significant financial flexibility stemming from its home rule status; and manageable debt profile, Moody's said.
The sales tax revenue bonds are also rated A1 because they are capped at the village's GO rating due to a lack of legal separation between the pledged revenue and the village's general operations, according to the rating agency.
