WASHINGTON - Fitch Ratings revised the outlook to stable from negative for $414.4 million of North Las Vegas, Nev., bonds, and affirmed the rating at B.
The securities affected are $284.7 million of limited-tax general obligation water and wastewater improvement bonds and $129.7 of LTGO bonds. Fitch said the junk-rated bonds warranted a revision to a stable outlook because of "successful negotiation of labor concessions needed to balance fiscal 2015 and 2016 budgets."
While Nevada law does not permit municipal bankruptcy, the once fast-growing city of approximately 222,000 has been struggling for several years now, and Fitch said last year that the city's financial struggles were similar to those facing Harrisburg, Pa., Stockton, Calif., and Detroit.
"The B rating continues to reflect Fitch's view that the city has virtually no remaining budget flexibility," Fitch said in an April 16 release. "Given tax caps and the scope of service cuts already made, Fitch believes any meaningful solutions are outside the city's control."