The city of North Las Vegas’ bond rating has been downgraded for the second time this year.
Fitch Ratings, citing the city’s economic decline beyond previous expectations, lowered its rating from an A+ to A, meaning future bond sales will cost the city more due to higher interest rates.
Fitch cut the city’s bond rating earlier this year from AA- to A+ and rated its outlook as “negative” for what was then $433 million in outstanding bonds.
As of Monday, the city’s rating of an A is five levels below the top rating of AAA.
“The downgrade … reflects continued general fund fiscal pressure evidenced in reduced liquidity necessitating the issuance of 2011 refunding bonds, which partially alleviate cash flow constraints by deferring principal payment for five years,” Fitch analyst Shannon Groff said.
In her report, Groff issued an A rating for $26.79 million in limited-tax general obligation refunding bonds that are scheduled to be sold through negotiation on Wednesday.
Contact reporter Chris Sieroty at firstname.lastname@example.org or 702-477-3893.