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 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."
All content © Copyright 2001 - 2014 WorldNow and KTTC, a Quincy station.
Persons with disabilities who need assistance with issues relating to the content of this station's public inspection file should contact Administrative Assistant Jodi Neyens at (507) 280-5104. Questions or concerns relating to the accessibility of the FCC's online public file system should be directed to the FCC at 888-225-5322, at 888-835-5322 (TTY) or at email@example.com.