MINNEAPOLIS (AP) — Minneapolis has been dealt a credit-rating setback.
Moody’s Investor Service said Monday it was knocking the city’s credit rating down a notch. It means the city is likely to face higher interest rates when it borrows for construction projects.
The Star Tribune (http://bit.ly/15tagmO ) reported Tuesday that the downgrade was based on declining property values, high pension liabilities, sizeable fixed costs, dependence on state revenue and above average debt levels.
The city did earn a “stable” outlook based on expectations of a strengthening tax base and other considerations.
Minneapolis Mayor R.T. Rybak had touted his city’s return to a top credit rating a few years ago. Rybak is stepping down after his third term ends.
The city’s chief financial officer questioned Moody’s methodology and called the downgrade “an overreaction.”
Information from: Star Tribune, http://www.startribune.com