NEW YORK - Moody's Investors Service said it has downgraded to B1 from Ba2 the rating of Indianapolis’ multifamily housing revenue bonds (Marcy Village Apartments Project) Series 2001, affecting $6,865,000 of outstanding debt.
The B1 rating reflects an asset-to-debt ratio below 100% given the 15 day notice of redemption period, and a low probability that reinvestment earnings on float funds will be sufficient to mitigate a cashflow shortfall given historically low interest rates.
The department shifted funds that would have been invested in solar power to improve the island's electrical system.
"We're seeing some of the additional instability and other things come into play," said Dan Genter, CEO of Genter Capital Management.
The Internal Revenue Service is requesting documents from the Erie City Water Authority regarding a $36,320,000 issuance of Water Revenue Bonds Series D of 2019.
The revenue bonds, which would help finance a bigger convention center to replace the city's current facility, would be issued in the first half of 2026.
Bond yields are shooting up for the second time in as many months. Federal Reserve Gov. Christopher Waller attributes the volatility to concerns about rising national debt levels.
The Senate will likely revise the House bill, which left tax-exempt bonds untouched after months of speculation.
