...The downgrade of the City of Coralville's Long-Term IDR to 'BBB' from 'BBB+' reflects implementation of Fitch Ratings' new U.S. Public Finance Local Government Rating Criteria. The 'BBB' rating reflects the city's 'aa' financial resilience assessment and weakest long-term liability burden (1st percentile of the Fitch local government rating portfolio). The city's long term liability burden is exceptionally high as a result of multiple prior debt issues to finance economic development projects. Demographic and economic trend and level metrics including population growth, low unemployment and high educational attainment are viewed as strong and are supported by the nearby University of Iowa and its medical center. The 'BBB¡' ratings on the GO annual appropriation bonds and COPs reflect a slightly higher degree of optionality associated with lease rental payments, as encapsulated in a onenotch differential from the IDR. Fitch observes a fournotch rating distinction between the Road Use Tax...
