Moody's Investors Service said it has downgraded the village of Bolingbrook, Ill.'s general obligation rating to A1 from Aa3.
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The A1 rating applies to $184.2 million of GO bonds. Debt service on the bonds is secured by a property tax levy that is unlimited as to rate or amount.
The A1 rating reflects the village's weak debt profile characterized by a high debt burden and extremely slow principal amortization; narrow general fund reserves and liquidity due to large advances to other funds, pressure from rising pension costs, relatively large tax base experiencing sustained declines, ample revenue raising flexibility, and above average resident wealth levels.
