Moody's Investors Service has downgraded the City of Peoria rating to double-A-3. That’s a step down from Double-A-2. The rating is assigned to the city's $10 million General Obligation Bonds Series issued this year.
A statement issued by the rating service says the debt is expected to be covered by utility tax and sewer fee revenues.
The double A rating category is judged to be of high quality and subject to very low credit risk. Remaining in the double A long-term scale also means the city is still considered Prime-one for its short-term rating status.
Moody’s rating says the downgraded rating also reflects the city's above average debt burden and unfunded pension liabilities. It incorporates the city's large tax base and notes the city as a regional economic center for central Illinois.
The report also says the city has a stable outlook to remain consistent over the medium-term.