Warning that Pontiac faces a growing deficit and a host of other fiscal challenges, Fitch Ratings earlier this month downgraded and put on negative watch two outstanding series of bonds already rated in junk territory. It put a third series on negative watch.
Fitch downgraded to CCC from BB $6.2 million of tax increment financing revenue bonds issued in 2002 by the Pontiac Tax Increment Finance Authority Area No. 2 and maintained its negative watch. The agency downgraded to BB-minus from BB-plus another $26.2 million of TIF revenue bonds sold in 2002 by the Pontiac Tax Increment Finance Authority Area No. 3 and maintained its negative watch on the series.
Fitch analysts also placed on negative watch $1.4 million of limited-tax general obligation bonds currently rated B-plus and issued by the Pontiac General Building Authority.
