Fitch Downgrades Annapolis’ Bond Rating
As was expected, one of the bond rating agencies, Fitch Ratings has downgraded Annapolis’ Bond Rating from AAA to AA+ and classified the new rating outlook as stable.
The rationale behind the downgrade included:
–The downgrade reflects the city’s diminished financial flexibility, as evidenced by declining reserves, a constrained liquidity position, and the current debt restructuring to achieve cash flow savings.
–Internal governance proved inadequate to deter previous inappropriate cash management and financial oversight. The city has since implemented more stringent internal controls and reporting.
–The Stable Outlook reflects Fitch’s belief that newly implemented internal controls and analytics will stem the financial decline.
–The city benefits from a stable employment base with a solid state, county, and federal government presence enhanced by tourism and maritime industries.
–The city’s debt burden is moderate and should remain so given manageable capital needs and adherence to debt affordability policies.
Full details can be found at Business Wire.
Category: NEWS, OPINION, POLITICAL NEWS
