NEW YORK - Moody's Investors Service said it downgrades to Baa1 from A2 and assigns a negative outlook to the rating of Louisiana Public Facilities Authority's revenue bonds (Nineteenth Judicial District Court Building Project) Series 2007.
The downgrade to Baa1 affects roughly $96.2 million in outstanding revenue debt.
The bonds are issued by the Louisiana Public Facilities Authority and payable from lease payments to be made by the Nineteenth Judicial District Building Commission, which, in turn, are secured by dedicated revenues of the court system assessed for the sole purpose of paying for construction of the new courthouse.
The rating downgrade reflects pledged revenue collections with some historic year-over-year declines, current pledged revenues that provide narrow coverage of maximum annual debt service, and adequate legal provisions. The rating also reflects the large stable economy and population of Baton Rouge. The negative outlook reflects a declining trend of pledged revenues for 2011 and year-to-date 2012.