Chicago Suburb Placed on Creditwatch for Lack of Financial Disclosure

CHICAGO — Markham, Ill., faces a possible further downgrade of its junk-rated debt unless it released updated financial information by Aug. 24, Standard & Poor's said Monday.

The Chicago suburb is currently rated BB-plus, one rung below investment grade.

S&P said the city has until Aug. 24 to provide the information or the ratings agency will take ratings action as well as withdraw the rating.

"This action follows repeated attempts by Standard & Poor's to obtain timely information of satisfactory quality to maintain our rating on the securities in accordance with our applicable criteria and policies," analyst Jennifer Boyd said in a press release.

Markham fell behind as it transitioned to a new accounting firm, according to Anthony Finch, the city's assistant chief financial officer since June.

"The challenge was that within the last six months the firm the city had hired for accounting is no longer with the city, and they brought me in as assistant CFO to do the accounting," Finch said. "So in that transition there was a three-to-four months [period] of no accounting activities."

Finch said the city has been in touch with S&P and will provide the information and hold a conference call with analysts by Aug. 24.

Markham last issued bonds in 2012 when it floated $5.5 million of general obligation bonds. A piece of the bonds with a 2032 maturity and a 6% coupon yielded 5.42% in the most recent trading last March, according to EMMA.

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Illinois
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