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State News

August 8, 2013

Moody’s places city of Montgomery under review

MONTGOMERY — 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.

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