LOS ANGELES -- Moody's Investors Service yesterday said it has lowered its rating on Reno general obligation bonds to A from A1, citing the city's narrowly based revenue structure and depleted reserves.
The action affects $65.4 million of GO bonds, including $1.6 million of new 1992 Series A bonds. Moody's also lowered its rating on the city's special assessment bonds to Baa1 from A, affecting $9.1 million of debt. That total includes $2.7 million of new local improvement district bonds for street improvements for the Dermody Business Park.
The 1992 GO bonds will fund early retirement benefits tied to permanent staff reductions.
"Although management has taken steps to reduce staffing and other expenditures and restore reserves, the reserve targets are quite modest and it is not certain whether the proposed actions will be sufficient to establish sustained fiscal intergrity and budgetary balance." Moody's said.