MOODY'S DOWNGRADES BERRIEN COUNTY'S (GA) CERTIFICATES OF PARTPICIPATION RATING TO Baa3 FROM Baa2

Posted on: December 10, 2009, 3:11 pm

NEW YORK, Dec 10, 2009 -- Moody's Investors Service has downgraded Berrien County's (GA) certificate of participation rating to Baa3 from Baa2, affecting $6.34 million in outstanding debt issued through the Association County Commissioners of Georgia Leasing Program and secured by the county's obligation to make annual rental payments to the trustee. Concurrently, Moody's downgraded the county's issuer rating to Baa2 from Baa1. The downgrade reflects the county's very limited financial position, evident in fiscal 2008 total General Fund balance of $400,000 or a narrow 4.5% of revenues and a deficit unreserved balance equal to -5.9% of revenues. The Baa3 rating also incorporates the county's moderately sized tax base of $1 billion, as well as wealth and income indices that are below state and national levels and a manageable debt burden (0.9% of full value) that is expected to remain low despite a below average amortization rate of outstanding debt (34.9% repaid in 10 years) due to absence of future borrowing. All of the county's debt is fixed rate and the county is not party to any derivative agreements...

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