articles Ratings /ratings/en/research/articles/200521-tax-secured-debt-rating-outlooks-on-local-governments-revised-to-negative-due-to-covid-19-recessionary-press-11503407 content
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

Tax-Secured Debt Rating Outlooks On Local Governments Revised To Negative Due To COVID-19, Recessionary Pressures


Cyber Risk In A New Era: Disruptions And Distractions Increase Challenges For U.S. Public Finance Issuers


U.S. Public Finance Report Card: The Not-So-Secret Sauce In State Housing Finance Agency Programs' Stability


U.S. Higher Education Rating Actions, Third Quarter 2020


Korea's COVID Comeback Holds Lessons For The World

Tax-Secured Debt Rating Outlooks On Local Governments Revised To Negative Due To COVID-19, Recessionary Pressures

(Editor's Note: We are republishing this report to remove Plano, Ill. from the list of affected credits. Our original report incorrectly included Plano even though all of its outstanding debt had been redeemed prior to the report\rquote s publication date.)

CHICAGO (S&P Global Ratings) May 21, 2020--S&P Global Ratings revised the outlook to negative from stable and affirmed its long-term and underlying ratings on a number of local governments with outstanding tax-secured debt due to heightened risks caused by the COVID-19 and the related recession.

"The outlook revisions reflect our view that there is at least a one-in-three chance of a lower general obligation (GO) bond rating for each of the local governments listed below within a time frame of up to two years, given the challenges we expect these governments to face both in the near term as the result the COVID-19 pandemic and related social distancing measures and over the medium term as a consequence of the economic fallout from the current recession," said S&P Global Ratings credit analyst Scott Nees.

As we described in our most recent U.S. economic forecast, "An Already Historic U.S. Downturn Now Looks Even Worse" (published April 16, 2020, on RatingsDirect), the current recession has reduced economic activity by roughly three times the decline seen during the Great Recession and in one-third of the time, and we expect U.S. GDP to contract by 5.2% in 2020. We further highlighted that headline unemployment could reach levels much closer to the Depression-era peak of 25% than to the 10% high during the last recession (see also "U.S. Biweekly Economic Roundup: With Unprecedented Job Losses, Unemployment Soars," published May 8, 2020). This forecast also came on the heels of a revision of the sector outlook for all of U.S. public finance (including local governments) to negative, reflecting our view that the remainder of 2020 is likely to see more negative than positive rating actions across all U.S. public finance sectors nationally (see "All U.S. Public Finances Sector Outlooks Are Now Negative," published April 1, 2020).

Against this backdrop, we expect that many local governments will experience heightened pressure on revenues as the result of COVID-19 and related social distancing measures taken to slow the spread of the disease. We consider such measures taken to protect the health and safety of the public a form of social risk under our environmental, social, and governance (ESG) factors.

In particular, we expect that governments with heavy reliance on more economically sensitive revenue streams such as hospitality, income, and sales taxes will be at greater risk of near-term credit deterioration, as will those with weaker budgetary reserves and liquidity. We further expect that the recession could continue to create fiscal hardship for governments even after the immediate crisis has passed, as factors such as lingering high unemployment could continue to have downstream economic effects that hamper local government revenue performance and pressure credit quality well beyond the current fiscal year.

The governments listed below have been selected for credit-specific reasons as being at risk of a lower rating within the next one-to-two years, if not earlier. We will continue to monitor how the COVID-19 pandemic and recession affect key rating factors--such as budgetary performance, reserves and liquidity, and the local economy--and could take negative rating actions should we see pressures emerge that we think mark a significant enough change to warrant a lower rating.

Local Government Ratings On Negative Outlook
Local government State Rating


CA AA-/Negative


AL BBB-/Negative

Bellefontaine Neighbors

MO A/Negative


MO A/Negative


MO A/Negative

Brewster Village

NY A+/Negative

Calumet City

IL BBB+/Negative


IL A+/Negative


IL A-/Negative

Derry Township (Westmoreland County)

PA A/Negative

Dwight Village

IL A/Negative

Fairvew Heights

IL AA/Negative

Hanover Village

IL A+/Negative


IL A/Negative


MO BBB+/Negative


IL A/Negative


AL A-/Negative

Lyons Village

IL A/Negative

Mammoth Lakes

CA A+/Negative


IL A+/Negative

Mechanicsburg Village

IL A-/Negative


IL AA-/Negative

North Las Vegas

NV A/Negative

Northvale Borough

NJ AA/Negative


NY A/Negative


IL A/Negative

Pulaski County

KY A/Negative


MO A+/Negative

Schaumburg Village

IL AAA/Negative


AL A/Negative

Sylvan Springs

AL A/Negative


TX A-/Negative

Tilton Village (Vermilion County)

IL A-/Negative

Two Rivers

WI BBB/Negative

Westchester Village

IL A-/Negative

White Hall

IL A-/Negative


Certain terms used in this report, particularly certain adjectives used to express our view on rating relevant factors, have specific meanings ascribed to them in our criteria, and should therefore be read in conjunction with such criteria. Please see Ratings Criteria at for further information. Complete ratings information is available to subscribers of RatingsDirect at All ratings affected by this rating action can be found on S&P Global Ratings' public website at Use the Ratings search box located in the left column.

Primary Credit Analyst:Scott Nees, Chicago (1) 312-233-7064;
Secondary Contact:Joshua Travis, Farmers Branch 972-367-3340;

No content (including ratings, credit-related analyses and data, valuations, model, software or other application or output therefrom) or any part thereof (Content) may be modified, reverse engineered, reproduced or distributed in any form by any means, or stored in a database or retrieval system, without the prior written permission of Standard & Poor’s Financial Services LLC or its affiliates (collectively, S&P). The Content shall not be used for any unlawful or unauthorized purposes. S&P and any third-party providers, as well as their directors, officers, shareholders, employees or agents (collectively S&P Parties) do not guarantee the accuracy, completeness, timeliness or availability of the Content. S&P Parties are not responsible for any errors or omissions (negligent or otherwise), regardless of the cause, for the results obtained from the use of the Content, or for the security or maintenance of any data input by the user. The Content is provided on an “as is” basis. S&P PARTIES DISCLAIM ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE, FREEDOM FROM BUGS, SOFTWARE ERRORS OR DEFECTS, THAT THE CONTENT’S FUNCTIONING WILL BE UNINTERRUPTED OR THAT THE CONTENT WILL OPERATE WITH ANY SOFTWARE OR HARDWARE CONFIGURATION. In no event shall S&P Parties be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs or losses caused by negligence) in connection with any use of the Content even if advised of the possibility of such damages.

Credit-related and other analyses, including ratings, and statements in the Content are statements of opinion as of the date they are expressed and not statements of fact. S&P’s opinions, analyses and rating acknowledgment decisions (described below) are not recommendations to purchase, hold, or sell any securities or to make any investment decisions, and do not address the suitability of any security. S&P assumes no obligation to update the Content following publication in any form or format. The Content should not be relied on and is not a substitute for the skill, judgment and experience of the user, its management, employees, advisors and/or clients when making investment and other business decisions. S&P does not act as a fiduciary or an investment advisor except where registered as such. While S&P has obtained information from sources it believes to be reliable, S&P does not perform an audit and undertakes no duty of due diligence or independent verification of any information it receives. Rating-related publications may be published for a variety of reasons that are not necessarily dependent on action by rating committees, including, but not limited to, the publication of a periodic update on a credit rating and related analyses.

To the extent that regulatory authorities allow a rating agency to acknowledge in one jurisdiction a rating issued in another jurisdiction for certain regulatory purposes, S&P reserves the right to assign, withdraw or suspend such acknowledgment at any time and in its sole discretion. S&P Parties disclaim any duty whatsoever arising out of the assignment, withdrawal or suspension of an acknowledgment as well as any liability for any damage alleged to have been suffered on account thereof.

S&P keeps certain activities of its business units separate from each other in order to preserve the independence and objectivity of their respective activities. As a result, certain business units of S&P may have information that is not available to other S&P business units. S&P has established policies and procedures to maintain the confidentiality of certain non-public information received in connection with each analytical process.

S&P may receive compensation for its ratings and certain analyses, normally from issuers or underwriters of securities or from obligors. S&P reserves the right to disseminate its opinions and analyses. S&P's public ratings and analyses are made available on its Web sites, (free of charge), and and (subscription), and may be distributed through other means, including via S&P publications and third-party redistributors. Additional information about our ratings fees is available at

Any Passwords/user IDs issued by S&P to users are single user-dedicated and may ONLY be used by the individual to whom they have been assigned. No sharing of passwords/user IDs and no simultaneous access via the same password/user ID is permitted. To reprint, translate, or use the data or information other than as provided herein, contact S&P Global Ratings, Client Services, 55 Water Street, New York, NY 10041; (1) 212-438-7280 or by e-mail to: