CHICAGO - Moody's Investors Service downgraded Kendall County Forest Preserve District in Illinois one notch to A2 and warned of further action by assigning a negative outlook as the district's balance sheet struggles.
The downgrade on May 26 applies to $46.7 million of debt.
"The A2 rating reflects the district's continued narrowing of reserves, ending with a deficit general fund balance in 2014 and a narrow liquidity position," Moody's wrote. "The rating also incorporates the district's large and wealthy tax base located within the Chicago metropolitan area; modest direct debt burden; and average pension obligations."
The negative outlook reflects the district's narrow fund and cash balances which will likely remain pressured without structural changes that result in balanced operations. The district serves a county about 45 miles southwest of Chicago. The district experienced considerable expansion due in large part to a voter approved $45 million bond issuance in 2007.