Moody's Investors Service said it has downgraded the village of Richton Park, Ill.'s general obligation unlimited tax rating to A2 from A1.
The A2 applies to $405,000 in outstanding general obligation alternate revenue source debt, which is ultimately secured by the village's property tax pledge that is unlimited by rate or amount. Debt service is additionally secured by certain tax increment fund revenues, although the village's GO pledge is the basis of the rating.
Moody's placed the village's rating under review with direction uncertain on April 28 due to a lack of audited fiscal 2013 financial information, which has since been received.
The A2 GO rating reflects the village's narrow general fund cash position following three consecutive years of operating deficits, ongoing pressures from tax appeals, underperforming TIF funds and diminished revenue raising ability given its lack of home rule authority. Also incorporated into the A2 are the village's small and declining tax base near Chicago (Baa1 negative), low debt burden, moderate pension burden and average socioeconomic profile.
