Montgomery-Credit Rating
4:41 pm
Thu August 8, 2013

Moody's Places City Of Montgomery Under Review

Moody's Investors Service has placed the city of Montgomery under review for a possible credit rating downgrade.
Moody's Investors Service has placed the city of Montgomery under review for a possible credit rating downgrade.
Credit AP Photo

Moody's Investors Service has placed the city of Montgomery under review for a possible credit rating downgrade.


The Montgomery Advertiser reports that the city's current Aa2 rating is in jeopardy.


A recent report said the current rating is in jeopardy because of a deteriorated reserve fund, a deficit in funding medical insurance and the city's recent failures to achieve projections established in previous budget plans.


The report also states that reliance on a bank line of credit to fund operations is also a "key reason" for the possible downgrade.


Moody's now plans to evaluate the city's finances during a review period.