Brentwood's Credit Rating Drops a Notch

Citing Brentwood’s “weakened financial position due to financial challenges over the last 3-5 years,” on Tuesday, Moody’s Investor Service, in New York, downgraded Brentwood’s outstanding certificates of participation to A1 from Aa3. That’s according to 4-Traders.com.

The drop from Aa3 to A1 is a drop of one level in Moody’s rating system of the credit worthiness of government debt issues. Aa3 is described as “high grade” and A1 is “upper medium grade.” A1 is still within the investment grade level.

Moody’s noted Brentwood’s strengths and weaknesses. Recent declines in the tax base were noted as one weakness. 

Two things that would bring the rating back up are increased reserve levels and “sustained demonstration of improved management practices.”

Read the full article in 4-Traders.com.