41°FOvercastFull Forecast

Updated credit ratings affirm Fox Lake’s financial position

Published: Wednesday, May 28, 2014 12:01 a.m. CDT • Updated: Wednesday, May 28, 2014 12:06 a.m. CDT

FOX LAKE – Bonds the village of Fox Lake took out for street improvements and to pay off other debt received an “upper-medium” rating from a ratings agency.

Moody’s Investors Service gave the new bonds an A1 rating, the same rating the village’s other debt was given in 2011 and affirmed again this year.

The rating means the agency, which is one of the three main international ratings agencies, considers the debt to be of an “upper-medium grade” and low risk to investors.

The village’s overall rating also was affirmed with the decision released Tuesday, keeping it an Aa3. That rating is higher than the A1 rating and means the agency considers the village to be a “very low credit risk.”

The rating balances the village’s healthy financial position and minimal debt with its modest tax base, which has depreciated over the last several years, and the tax cap, which limits its ability to raise taxes to cover its debts.

Get breaking and town-specific news sent to your phone. Sign up for text alerts from the Northwest Herald.

Reader Poll

Have you ever been the victim of hacking?