Kankakee, IL GO Debt Rating Suspended Due To Information Lapse

CHICAGO (S&P Global Ratings) Aug. 26, 2019--S&P Global Ratings suspended its rating on Kankakee, Ill.'s general obligation (GO) debt.
S&P Global Ratings took this action because it lacks sufficient information to fully assess the city's credit quality, in accordance with its applicable criteria and policies. Specifically, the city's audited financial statements for fiscal 2018 are not yet available despite the city being more than 15 months since the end of the fiscal year on April 30, 2018. Prior to withdrawing the rating, S&P Global Ratings took any rating action on the issuer that it considered appropriate given available information.
Although the city's management expects the auditor to eventually release the fiscal 2018 financial statements, there is no specific timeframe for it to do so. In addition, the city released audited financial statements for fiscal 2017 in November 2018, 18 months after fiscal year-end.
The reinstatement of the rating on the city's GO debt will depend not just on S&P Global Ratings' receipt of audited fiscal 2018 financial statements but on management assurances that future audits will not have similar delays. If S&P Global Ratings reinstates the rating, it could be different from what it was previously.
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