Fitch Ratings last week downgraded Kalamazoo, Mich.'s implied rating to AA from AA-plus, saying the city faces a myriad of challenges.

"The downgrade reflects a decline in the city's overall financial flexibility and continued challenges in restoring structural balance in the face of tax base deterioration, state revenue declines, own-source revenue limitations, and forward spending pressures," Fitch said in the downgrade report.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.