Moody’s Investors Service has placed the Ba3 rating on the Harrisburg Parking Authority’s $18 million of outstanding guaranteed Series 2007T revenue bonds on review for possible downgrade.
The authority last month extended its lease with Pennsylvania’s capital city of Harrisburg by 10 years, in a $7.4 million deal that enabled the city to meet September payroll and make two general obligation bond payments totaling $3.4 million.
The action by Moody’s followed a Chapter 9 bankruptcy filing by Harrisburg’s City Council two weeks ago and a takeover law the General Assembly passed and Gov. Tom Corbett signed last week. Both face a challenge in court on Nov. 23, when Judge Mary France holds a hearing at the U.S. Bankruptcy Court for the Middle District of Pennsylvania in Harrisburg.