Moody's Investors Service downgraded the Springfield Park District's debt to Baa1 from A3 and assigned a negative outlook due to the district's narrowed financial position.
The action affects $14.2 million of debt, and came in conjunction with the district's planned sale of $1.65 million of bonds. It has raised revenue and cut spending to eliminate a current-year deficit but multiple operating deficits coupled with spending on capital projects has depleted general fund reserve levels.
"The downgrade to the Baa1 rating reflects the district's narrowed financial position with negative reserve levels; moderately growing tax base incorporating Springfield … and low debt burden with rapid principal amortization," analysts wrote. "Further, the negative outlook reflects the continued challenges associated with the district's weak liquidity."