Fitch Ratings said it downgraded to A-plus from AA-minus Bay City, Mich.'s $15,245,000 in outstanding limited tax general obligation bonds (LTGO), series 2004, 2004B, 2005, 2008A, 2008B, and 2010A and its implied unlimited tax general obligation (ULTGO) rating.
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The city has no outstanding ULTGO bonds.
The rating outlook is stable.
The LTGO bonds are secured by the city's full faith and credit and its ad valorem tax, subject to statutory and constitutional limitations.
The downgrade to reflects continued economic weakness and related revenue pressures, a structural imbalance in recent years that has weakened overall financial flexibility, and continued increases in the city's fixed cost burden from prior elevated levels.
