- December 17, 2021
- Posted by: Stratford Team
- Category: Business
The bond rating agency Moody’s has downgraded Overland Park’s credit rating, due to pandemic stresses on the hospitality industry and the city’s convention center hotel.
The city’s general obligation unlimited tax rating dropped from Aaa to Aa1 on Dec. 6.
Triple A is the highest rating on the Moody’s scale, and Aa1 the second highest. General obligation tax bonds are those a city puts its full faith and credit behind, under the knowledge that the bond can be repaid through taxes.
Moody’s also revised Overland Park’s outlook from “stable” to “negative.”
An explanation on the Moody’s website notes that the city has $99.6 million in this type of debt.
The Aa1 rating is still relatively high.
Moody’s noted that its revised rating takes into account Overland Park’s affluent tax base, strong past performance and affordable debt and pension obligations.
Reasons for downgrade
The downgrade is attributed to management of the Overland…
