Moody's Investors Service said it has downgraded to Aa1 from Aaa the general obligation rating of the village of Elk Grove, Ill.

The village has $82.2 million of outstanding general obligation debt.

The rating has been removed from review for possible downgrade.

The village's outstanding general obligation debt is secured by a property tax that is unlimited as to rate or amount.

The downgrade of the city's GO rating to Aa1 from Aaa reflects the village's sizable outstanding pension liabilities. Also incorporated in the rating action is village's stable general fund operations with significant reserves and revenue raising flexibility; sizable tax base with a strong industrial and commercial presence; and a manageable debt burden.

The city's rating was placed on review for downgrade due to its large adjusted net pension liability relative to its rating category as part of our new approach to analyzing state and local government pension liabilities.

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