St. Louis saw its credit rating dinged for the fourth time in less than three years, as Moody’s Investment Service downgraded the city’s general-obligation rating and its rating on revenue bonds.
The ratings hits could mean higher borrowing costs for the city.
Darlene Green, the city’s comptroller, said the news should be a “wake-up call” to the city as it weighs tax incentives for developers.
The city’s general-obligation rating fell from A3 to Baa1. Obligations rated Baa are subject to moderate credit risk.
Moody’s cited a “weakened reserve position” and “economically sensitive revenue streams” in downgrading the rating.
In a bit of good news for St. Louis, Moody’s revised the city’s financial outlook to “stable,” citing a recent vote by city officials to dedicate funds to building up city savings.
Read more: St. Louis Post-Dispatch