12/16/20 – Moody’s Investors Service has assigned a Aaa rating to Park District of Highland Park’s $6.5 million General Obligation Limited Tax Park Bonds, Series 2020. Moody’s maintains the Aaa issuer rating and Aaa general obligation limited tax (GOLT) rating on the Park District’s outstanding bonds. Following the sale, the Park District will have $21.8 million in outstanding GOLT debt, all of which is rated by Moody’s.
The Park District’s issuer rating represents Moody’s assessment of the hypothetical debt of the Park District supported by a general obligation unlimited tax (GOULT) pledge. The Park District does not currently have any rated debt supported by a GOULT pledge.
RATINGS RATIONALE
The Park District’s Aaa rating reflects a large and affluent tax base, strong financial position further bolstered by additional liquidity within its capital projects funds and modest debt and pension burdens.
The absence of a distinction between the rating on the Park District’s GOLT debt and the issuer rating is based on the nature of the pledge, which is a first budget obligation payable from all available funds. Debt service is supported with a dedicated levy that is unlimited by rate but limited by the amount of the district’s debt service extension base (DSEB).
RATING OUTLOOK
Outlooks are usually not assigned to local governments with this amount of debt outstanding.
FACTORS THAT COULD LEAD TO A POTENTIAL DOWNGRADE
