Moody's downgrades to Baa3 the City of Reno, NV

Moody's Investors Service has downgraded to Baa3 from A3 the rating on the City of Reno, Nevada's Taxable Senior Lien Room Tax Revenue Refunding Bonds (ReTRAC-Reno Transportation Rail Access Corridor Project) Series 2006 outstanding in the amount of $8.1 million. The rating carries a negative outlook. The bonds are secured by a senior lien pledge on a dedicated 1% hotel room tax applied to all accommodations located within a 45 square block area within Reno's downtown. Bond proceeds were originally issued to partially prepay a ReTRAC project loan between the U.S. Department of Transportation (USDOT) and the city as well as fund various reserve accounts.