Moody's Investors Service said it has placed the A1 issuer rating on the city of Coralville, Iowa's sewer enterprise on review for possible downgrade.
The sewer enterprise issuer rating has been placed under review in light of credit action taken on the city's general obligation rating and low liquidity in the sewer enterprise at the close of fiscal 2011.
At the end of fiscal 2011, the city had limited liquidity across governmental funds due to cash flowing of capital and economic development projects.
The sewer enterprise had $50,000 in cash, representing 3.7% of operating and maintenance expenditures, with the remainder of its cash tied up largely in interfund receivables. The rating is under review, pending receipt of results from fiscal 2012, which ended on June 30th.