CHICAGO — Moody’s Investors Service downgraded the Chicago suburb of Oak Lawn to Aa3 from Aa2, warning that the village faces a series of fiscal challenges after two years of operating deficits.

Oak Lawn plans to enter the market next week with $32 million of new money, taxable Build America Bonds and refunding bonds. The transaction will refund more than one-third of its outstanding debt, which totals $83.3 million.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.