Moody's Investors Service said it has downgraded to Aa3 from Aa2 the city of Willmar, Minn.'s general obligation rating.
Concurrently, Moody's has assigned a Aa3 rating to the city's $2.0 million general obligation improvement bonds, Series 2013A. Post-sale the city will have $131 million of outstanding general obligation debt.
The Series 2013A bonds are secured by the city's general obligation unlimited tax pledge.
Proceeds will finance various street improvement projects within the city.
The downgrade to Aa3 reflects the city's exposure to enterprise risk associated with its hospital and other enterprise operations. Also incorporated into the rating is the city's ample general funds reserves, moderately sized tax base with a recent market valuation decline, and elevated debt burden.
