Moody’s Investors Service has revised its outlook to negative on Des Moines’ Aa2 sewer enterprise bond rating.

The action impacts $15.6 million of rated debt secured solely by a senior-lien pledge of net revenues from the city’s sewer system.

“The negative outlook reflects likelihood that the system’s limited liquidity and recently reduced debt-service coverage will not improve in the near term as projected,” Moody’s wrote.

The credit, according to analysts, is supported by adequate senior-lien debt service coverage levels; a modest unrestricted cash position; consistent implementation of rate increases; and sound overall credit characteristics of the Des Moines service area.

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