Having a hard time guaranteeing a large loan, Collingswood has been downgraded from A1 to Ba1 by Moody’s Investors Service — a six level “super downgrade,” according to the Philadelphia Business Journal.
The $8.5 million loan dates back to the 2006 development of a mixed-use property. Lumberyard Redevelopment LLC was supposed to repay the debt service, but as Bond Buyer explains, the loan was also secured by a guaranty from the borough.
The housing downturn brought agreement modifications, and Collingswood wants the lender to extend the maturity date (currently Oct. 7) by one year. The lender, on the other hand, first wants the balanced reduced to $4 million.