Moody’s reaffirms Chicago archdiocese’s A1 rating, outlook remains negative

CHICAGO (IL)
National Catholic Reporter

Tom Gallagher | Jul. 17, 2015 NCR Today

Moody’s Investors Service affirms the Chicago archdiocese’s A1 rating on its privately placed Series 2012 and Series 2013 Unsecured Notes.

Moody’s defines an A1 rating as “obligations rated A are judged to be upper-medium grade and are subject to low credit risk.” A triple-A rating is the highest followed by Aa1, Aa2, Aa3, and then A1. The A1 rating is considered an investment grade rating.

The total amount of the notes still outstanding is approximately $154 million. (See the archdiocese’s most recent independent accountants’ review report by Deloitte & Touche, LLP.)

The notes are a general obligation of the archdiocese and will be paid from funds of the chancery and Catholic cemeteries, but the archdiocese can access other funds as available to meet debt service payments on the notes.

The outlook is negative is due in part to weak operations, along with uncertainty around the potential impact of priest sex abuse settlements. In many respects, this is unsurprising.

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