Moody's Investor Service (one of the nation’s top three bond credit rating agencies) has upgraded the rating of two of the City of Springfield’s bond issues related to Jordan Valley Park’s Baseball Stadium Project.
The two issues, Springfield Center City Development Corporation MO's Series 2002B&C Taxable Revenue Bonds, were upgraded to Aa3 from A1. The Aa3 rating is two notches lower than Moody's Aa1 general obligation rating on the City of Springfield. The two-notch distinction is due to the bonds being issued for a less-essential project, specifically, a baseball stadium.
“This is extraordinary news and a reflection of how Moody's is viewing the City's sound financial condition,” said David Holtmann, City interim Finance director. Moody's reported the bonds are secured by loan payments from the City subject to annual appropriations. The 2002B bonds also benefit from a mortgage lease agreement with the developer, and guarantee agreement with the developer. The developer is the Revocable Trust of John Q. Hammons, which filed for bankruptcy in June. The trust is continuing to make payments to the trustee. If the trust were to stop making payments, there would be minimal impact to the City's General Fund.
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