Moody’s Investors Service Inc. has dropped its rating of the city of Coralville’s $93.5 million of general obligation unlimited tax debt to Baa3 from Baa2 and changed the rating on the city’s $146.6 million of annual appropriation-backed debt to Baa2 from Baa1, the Corridor Business Journal reported. Baa3 is Moody’s lowest investment-grade debt rating. A rating of Baa2 is one level higher and reflects moderate credit risk. The ratings affect a city’s ability to borrow money as well as the cost of servicing that debt. Moody’s said Coralville had an “elevated debt profile.” The city’s “highly leveraged tax increment financing districts” will have to be restructured to meet debt service obligations in fiscal 2016. Among the liabilities cited by Moody’s are the city’s ownership of a hotel, golf course, performing arts center, brewery and restaurant.