Post by Logan on Jun 5, 2016 9:54:50 GMT -6
Fitch Ratings has downgraded the city of St. Louis' default rating and the rating on its lease revenue bonds.
The city's Issuer Default Rating was downgraded from "A-" from "AA-," and the lease revenue bonds issued through they city's Municipal Finance Corp. were downgraded to "BBB+" from "A+."
Fitch's said the action reflects a combination of negative credit trends and the application of its revised criteria for U.S. tax-supported ratings.
"St. Louis's persistently narrow reserves well into an economic recovery, coupled with the absence of a plan to restore general fund reserves to levels consistent with the city's policy targets, have reduced Fitch's assessment of the city's financial flexibility under the revised criteria," the ratings agency said.
Read more: www.bizjournals.com/stlouis/morning_call/2016/06/fitch-downgrades-citys-bond-default-rating.html
The city's Issuer Default Rating was downgraded from "A-" from "AA-," and the lease revenue bonds issued through they city's Municipal Finance Corp. were downgraded to "BBB+" from "A+."
Fitch's said the action reflects a combination of negative credit trends and the application of its revised criteria for U.S. tax-supported ratings.
"St. Louis's persistently narrow reserves well into an economic recovery, coupled with the absence of a plan to restore general fund reserves to levels consistent with the city's policy targets, have reduced Fitch's assessment of the city's financial flexibility under the revised criteria," the ratings agency said.
Read more: www.bizjournals.com/stlouis/morning_call/2016/06/fitch-downgrades-citys-bond-default-rating.html