Moody's Investors Service said it has downgraded the rating on Lisle-Woodridge Fire Protection District, Ill.'s outstanding general obligation limited tax notes to A1 from Aa3.
Concurrently, Moody's has downgraded the district's issuer rating to Aa3 from Aa2.
The Aa3 issuer rating reflects a recent trend of underfunding annual pension payments, highlighting the financial risk stemming from the district's elevated pension liabilities and statutory requirements that require the district to fully fund its employer contributions.
Additionally, the rating incorporates the district's sizeable tax base located in Du Page County (Aaa) in the Chicago (Baa1 negative) metro area; sizable operating reserves and healthy cash balances; and manageable debt profile with a minimal direct debt burden and no expectation to issue additional debt in the foreseeable future.
The A1 rating on the GOLT notes is notched once off the district's issuer rating and reflects the inherently weaker security, which does not benefit from a dedicated property tax levy.
