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MOODY'S REVISED RATINGS ON RENO, NEV. DEBT CITES DEPLETED RESERVES AND LACK OF FINANCIAL FLEXIBILITY

 MOODY'S REVISED RATINGS ON RENO, NEV. DEBT
 CITES DEPLETED RESERVES AND LACK OF FINANCIAL FLEXIBILITY
 NEW YORK, June 8 /PRNewswire/ -- Effective June 5, Moody's Investors Service revised the rating on the City of Reno general obligation bonds from 'A1' to 'A' in conjunction with the sale of $1,575,000 of Series June 1, 1992 A Bonds. Moody's also assigned a rating of 'Baa1' to $2,739,000 Local Improvement District No. 1989-2 (Dermody Business Park) Series June 1, 1992 bonds for street improvements. In conjunction with the sale, the ratings of approximately $6.3 million in assessment bonds were revised from 'A' to 'Baa1'.
 In revising its rating, Moody's cited the city's narrowly-based revenue structure and depleted reserves as the basis of the rating action. The bonds being issued will find early retirement benefits related to permanent staff reduction. 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 integrity and budgetary balance. Although the assessment debt ultimately carries a limited tax pledge, this debt is rated lower than regular limited tax debt because of potential delay in tapping this pledge.
 General obligation bonds, including current sale $65,395,000.
 Special assessment bonds, including current sale $ 9,081,000.
 -0- 6/8/92
 /CONTACT: Diane R. Gatewood, 212-553-0849, or Barbara J. Flickinger, 212-553-7736, both of Moody's Public Finance Department/ CO: ST: Nevada IN: SU: RTG


LR-AH -- NY054 -- 7988 06/08/92 13:52 EDT
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Publication:PR Newswire
Date:Jun 8, 1992
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