Moody's Investors Service said it has downgraded to Baa1 from A2 the general obligation rating on Hanover Park Park District, Ill.
The Baa1 rating applies to $4.6 million in outstanding GO debt. The outlook is negative.
The Baa1 rating is based on the district's moderately sized and declining tax base with average wealth indices; consistently narrow financial position with extremely limited liquidity; and manageable debt and pension liabilities.
The negative outlook is based on the expectation that the district will remain financially challenged over the near to medium term. With a very narrow liquidity position across all operating funds, the district is especially vulnerable to broader economic pressures that would prohibit the district's practical ability to maintain or raise fee-based operating revenue.
