Montgomery credit rating downgrade

AP Photo

A credit rating agency has downgraded Montgomery's credit rating, citing what it calls the city's weakened financial position.

Moody's Investor Service issued the lower rating in a report released Monday.

The city was downgraded from an Aa2 rating, which is the third-best rating available, to an A1 rating with a negative financial outlook.

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.