Moody's downgrades Chillicothe, OH's long-term GOLT rating to A2

Posted on: February 13, 2014, 10:19 am

NEW YORK, February 13, 2014 --Moody's Investors Service has downgraded to A2 from A1 the City of Chillicothe, OH's long-term general obligation limited tax (GOLT) rating, affecting $6.5 million of outstanding long-term debt. Concurrently, Moody's has assigned a MIG 1 rating to the city's $2.7 million Various Purpose (General Obligation Limited Tax) Bond Anticipation Notes, Series 2014. The BANs are secured by the city's general obligation limited tax pledge subject to the State of Ohio's (GO rated Aa1/stable outlook) 10-mill limitation. Proceeds will be used to retire the city's outstanding $2.4 million Water System Improvement (General Obligation Limited Tax) Bond Anticipation Notes, Series 2013 due March 7, 2014 which were issued for the purpose of improving the city's water system. The remaining $300,000 in new money BAN proceeds will be used to finance equipment acquisitions. The Series 2014 BANs mature on March 7, 2015 and are expected to be taken out with another round of short-term, roll-over borrowing. The negative outlook previously associated with the city's rating has been removed...

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