Standard & Poor's Ratings Services said it lowered its issuer credit rating to AA-minus from AA on St. Joseph, Mo.
At the same time, Standard & Poor's lowered its long-term rating to A-plus from AA-minus on the city's appropriation debt issued by the Missouri Development Finance Board and the St. Joseph Industrial Development Authority.
The rating on the appropriation debt is set one notch below the ICR, reflecting annual appropriation risk. The outlook is stable.
"The lowered rating is based on the city no longer being considered a broad and diversified local economy under our local government criteria," said Standard & Poor's credit analyst David Smith. "We do not anticipate changing the rating during the two-year outlook horizon because we believe the city will likely maintain its strong budgetary performance."
St. Joseph encompasses 45 square miles of Buchanan County and has an estimated population of 77,740. Although some residents commute 50 miles to the Kansas City metropolitan area for employment, most residents are employed within the city.
