Rating Action: Moody's assigns Baa1 to Kankakee County's (IL) $1.4M GO Bonds; outlook positiveGlobal Credit Research - 02 Sep 2022New York, September 02, 2022 -- Moody's Investors Service has assigned a Baa1 rating to Kankakee County's $1.4 million General Obligation Bonds (Alternate Revenue Source), Series 2022. Moody's maintains the Baa1 rating on the county's outstanding general obligation unlimited tax (GOULT) bonds and the Kankakee County Public Building Commission's non-contingent lease bonds that are backed by the GOULT pledge of the county. Following the sale, the county is estimated to have around $8.4 million in debt outstanding. The outlook is positive.RATINGS RATIONALEThe Baa1 rating on the GOULT bonds reflects the county's significantly improved financial position though general fund reserves remain somewhat limited. Also incorporated into the rating is the county's volatile revenue structure including significant receipts generated from detainee bed rentals. Other factors considered include the county's large tax base that has been boosted by renewable energy development and moderate leverage.RATING OUTLOOKThe positive outlook is based on the expectation that the county's finances will continue to improve because of ongoing revenue growth, an influx of federal aid and continued expenditure constraint.FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATING- Sustained improvement in available reserves and liquidity- Economic expansion that accelerates revenue growth and strengthens demographic trendsFACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATING- Deterioration in liquidity- Significant increase in the debt or pension burdensLEGAL SECURITYThe county's GOULT bonds are backed by its pledge and authorization to levy a property tax unlimited as to rate or amount to pay debt service. The county has also pledged additional revenue to each series. The additionally pledged revenues for the Series 2022 bonds is animal control collection fees, for the Series 2009 bonds is certain Circuit Court fees; and for the Series 2011, Series 2012, and Series 2012A is fee revenue from federal per diem prisoner incarceration. The county has covenanted that the property tax levy will be abated only after sufficient revenues have been collected in the Debt Service Fund from the additionally pledged revenues. The county began extending the levy for debt service in 2016 and continues to do so.USE OF PROCEEDSProceeds from the bonds will primarily finance an animal control facility.PROFILEKankakee County is located approximately 50 miles south of Chicago (Ba1 stable) with a population well over 100,000.METHODOLOGYThe principal methodology used in this rating was US Local Government General Obligation Debt published in January 2021 and available at https://ratings.moodys.com/api/rmc-documents/70015. Alternatively, please see the Rating Methodologies page on https://ratings.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. Moody's Rating Symbols and Definitions can be found on https://ratings.moodys.com/rating-definitions.For ratings issued on a program, series, category/class of debt or security this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series, category/class of debt, security or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. 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