Standard & Poor’s downgraded Fresno’s issuer credit rating three notches, to A from AA, the agency said in a report Monday.
S&P also downgraded the city’s $365 million of lease-revenue bonds to A-minus from AA-minus, citing a persistent structural imbalance resulting from a significantly weakened financial position.
Though Fresno managed a balanced general fund budget for fiscal 2012, it has almost drained the emergency reserve fund that helped it balance the budget in the past, analysts said.
Inflows returned to muni mutual funds as investors added $200.3 million for the week ending Wednesday after $1.474 billion of outflows, according to LSEG Lipper.
Democratic Gov. Laura Kelly nixed another tax cut bill passed by the Republican-led legislature this year, while pushing a less-costly plan.
It's a big week for the Fortress-backed train company, which refinanced more than $4 billion of debt and broke ground on its West Coast high-speed line.
Photos from The Bond Buyer's Texas Public Finance conference.
The Mayo Clinic is undertaking a $5 billion expansion that may bring new debt as it reconstructs its core Rochester, Minnesota campus.
"Just like the ATM became an additional transaction channel in the banking industry, I believe distributed ledger technology will provide municipal issuers with a similarly valued tool to sell their bonds," said Rick Coscia, Quincy's Strategic Asset Manager.
