Moody's Investors Service has downgraded to Aa3 from Aa2 the rating on Waukegan Park District, Ill.

The Aa3 rating applies to $17 million of outstanding rated general obligation debt.

The outstanding bonds are secured by the district's general obligation unlimited tax pledge.

The downgrade to the Aa3 rating reflects Waukegan Park District's rapidly declining tax base, reduced operating revenue raising flexibility due to property tax rate limitations, weakened socioeconomic profile, and high annual debt service requirements.

In addition to these challenges, the Aa3 rating incorporates several credit strengths, namely healthy reserves and a favorable location between the Chicago (Aa3/ratings under review) and Milwaukee (Aa2/stable) metropolitan areas.

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