MOODY'S DOWNGRADES ADAMS COUNTY (MS) GENERAL OBLIGATION RATING TO Ba1 FROM Baa2 AND ASSIGNS NEGATIVE OUTLOOK

Posted on: December 22, 2009, 4:05 pm

NEW YORK, Dec 22, 2009 -- Moody's Investors Service has downgraded Adams County's (MS) underlying general obligation rating to Ba1 from Baa2 and assigned a negative outlook. The downgrade reflects the county's diminishing financial reserves. The rating also continues to take into consideration a moderately sized tax base, and a modest debt burden. The $1.565 million in outstanding debt is secured by an ad valorem tax to be levied on all taxable property within the county without limitation as to rate or amount. Five consecutive years of deficit spending have placed the county's financial position under tremendous stress and General Fund balances are now at levels of greater than negative 20% of their General Fund revenues. The medium sized tax base, now a $1.39 billion full valuation, has seen a moderate 2.9% growth rate annually on average for the past five years. All of the county's debt is fixed rate and the county is not parity to any derivative agreements. Adams County, located in southwest Mississippi along the Mississippi River, is mainly comprised of residential property and is known for it historical antebellum style homes...

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