City of Montgomery may see downgrade of credit rating - WSFA.com Montgomery Alabama news.

City of Montgomery may see downgrade of credit rating

MONTGOMERY, AL (WSFA) -

The City of Montgomery is under review and could see its credit rating downgraded. The downgrade's effect would be on interest rates.

If the city's credit rating goes down, it may have to pay a higher interest rate. Also, the value of the bonds the city already owns could go down.

Moody's Investor Service initiated the review of the state's capital city saying the city of Montgomery has relied on a bank line of credit for an extended period of time and has not been able to make its budget projections for several cycles.

Those reason were among several that Moody's offered for the reason it's placing the city in review. Moody's also cites a deteriorated reserve fund and a shortage in funding medical insurance as reasons for the review.

Montgomery's director of finance does not expect to see the rating downgraded. Lloyd Faulkner says Montgomery is making a come-back.

"It's not been easy, but we've been fortunate, and the city of Montgomery is on the upswing, doing well," Faulkner says. "You know that line is not curving straight back up, it's pretty slanted, but we're on the way back."

The city's current credit rating is Aa2, the third highest rating available.

Moody's expects its review to take about 60 days.

Copyright 2013 WSFA 12 News.  All rights reserved.

  • Trending StoriesTrending StoriesMore>>

  • Mom who went to classes with quadriplegic son gets MBA

    Mom who went to classes with quadriplegic son gets MBA

    Wednesday, May 24 2017 3:27 AM EDT2017-05-24 07:27:51 GMT
    Wednesday, May 24 2017 3:32 AM EDT2017-05-24 07:32:22 GMT
    A Southern California university has granted a surprise honorary degree to the mother of a quadriplegic student after she attended every class and took notes for him while he earned his MBA.More >>
    A Southern California university has granted a surprise honorary degree to the mother of a quadriplegic student after she attended every class and took notes for him while he earned his MBA.More >>
  • Pregnant teen blocked from walking at graduation

    Pregnant teen blocked from walking at graduation

    Wednesday, May 24 2017 2:45 AM EDT2017-05-24 06:45:22 GMT
    Wednesday, May 24 2017 2:45 AM EDT2017-05-24 06:45:22 GMT

    The school principal says the student and her parents signed a covenant, vowing the teen wouldn’t have sex.

    More >>

    The school principal says the student and her parents signed a covenant, vowing the teen wouldn’t have sex.

    More >>
  • Deadly virus threatens local crawfish industry

    Deadly virus threatens local crawfish industry

    Tuesday, May 23 2017 7:26 PM EDT2017-05-23 23:26:19 GMT

    A deadly virus is threatening the crawfish industry in Southwest Louisiana. It's called white spot syndrome virus and it was first discovered in Thailand, but somehow it made its way to ponds in South Louisiana and specialists are struggling to find the funds to research a solution.  “The catch was increasing and increasing and then it dropped 70% and that's when you saw the dead crawfish floating in the water,” said a crawfish farmer of 34 years, Ian Garbarino. He...

    More >>

    A deadly virus is threatening the crawfish industry in Southwest Louisiana. It's called white spot syndrome virus and it was first discovered in Thailand, but somehow it made its way to ponds in South Louisiana and specialists are struggling to find the funds to research a solution.  “The catch was increasing and increasing and then it dropped 70% and that's when you saw the dead crawfish floating in the water,” said a crawfish farmer of 34 years, Ian Garbarino. He...

    More >>
Powered by Frankly