Moody's Investors Service said it has downgraded to Aa3 from Aa2 the city of Forest Park, Ohio's $2.0 million in general obligation limited tax debt and removes the rating from review.
Concurrently Moody's assigns a negative outlook. The city has a total of $2 million of outstanding GOLT bonds, all of which is secured by the city's full taxing authority, subject to the Ohio statutory 10-mill limitation.
Moody's placed the rating under review with direction uncertain on December 27, 2013, due to the lack of audited fiscal 2012 financial information, which has since been received.
The Aa3 rating reflects the city's small and recently declining tax base, depressed housing market, and weakened socioeconomic profile. The negative outlook reflects the city's financial pressures in the near to medium term including underperforming operating revenues, and a strain on operating funds from subsidizing non-major capital projects.
