Rating Action: Moody's affirms A1/A2 rating on Atlanta Dev. Auth.'s (GA) senior/subordinate Rev. Bonds; outlook negativeGlobal Credit Research - 19 Feb 2021New York, February 19, 2021 -- Moody's Investors Service has affirmed the A1 rating on the City of Atlanta, GA's Revenue Bonds (New Downtown Atlanta Stadium Project), Series 2015A-1 and Revenue Bonds (New Downtown Atlanta Stadium Project), Taxable Series 2015A-2 and the A2 rating on the Revenue Bonds (New Downtown Atlanta Stadium Project), Second Lien Series 2015B. The bonds are issued through the Atlanta Development Authority. The outlook is negative.RATINGS RATIONALEThe A1 on the senior lien bonds incorporates the very narrow tax pledged for repayment (Hotel and Motel tax) and a drastic reduction in collections and debt service coverage due to the coronavirus, with these factors offset by a fully funded debt service reserve fund and a pledged tax stabilization fund equal to MADs, both of which are funded with cash and the likelihood of extraordinary support from the city's general resources if needed. The city remains a regional economic center and its credit strength is not materially affected by the decline in its travel and tourism-related tax revenues. Based on recent collections and Moody's expectations for limited improvement, pledged revenue collections will fall below 1.0 times and the city is expected to utilize available reserves to make these payments. Available reserves will be able to sustain debt service for 2021 and 2022.The second lien bonds are rated one notch below the senior lien bonds, reflecting the subordinate nature of the pledge.Today's action reflects the impact of the coronavirus pandemic on the city's special tax bonds. Declines in travel to the city has led to significant decreases in hotel and motel tax revenues, which has resulted in declining debt service coverage in the current fiscal year.RATING OUTLOOKThe negative outlook reflects the risk of prolonged weakness in Hotel and Motel tax collections which could lead to significant draws on the pledged reserves and bring forward the need for extraordinary city support.FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATINGS- Improved collections leading to increased debt service coverageFACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATINGS- Use of debt service reserve fund (without replenishment) to make debt service payments- Failure of the city to appropriate any legally available funds to cover shortfalls in pledged revenue, if neededLEGAL SECURITYThe bonds are secured by 39.3% of the first 7% of an 8% tax on hotel and motel stays within the City of Atlanta. USE OF PROCEEDS N/A PROFILE The City of Atlanta (Aa1 stable) serves as an economic hub to the southeast and is the largest city in Georgia (Aaa stable). As of 2020, the city's population was 506,811, an 18.7% increase from 2010.METHODOLOGYThe principal methodology used in these ratings was US Public Finance Special Tax Methodology published in January 2021 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBM_1260087. Alternatively, please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.REGULATORY DISCLOSURESFor further specification of Moody's key rating assumptions and sensitivity analysis, see the sections Methodology Assumptions and Sensitivity to Assumptions in the disclosure form. 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