NEW YORK - Moody's Investors Service said it has downgraded the general obligation rating for the city of Fort Worth, Texas, to Aa2 from Aa1.
The rating adjustment affects $371 million of the city's outstanding general obligation debt. Also, Moody’s said it has downgraded to Aa3 from Aa2 approximately $21.9 million in remaining debt for lease revenue bonds issued in 2004 on behalf of the city by Service Center Relocation, Inc. The outlook is stable.
The rating action reflects continuing challenges related to the city's financial reporting infrastructure.
Despite notable improvement in the quality and quantity of financial personnel over the past two years, antiquated information technology has contributed to significant delays in releasing audited financial statements.
Lack of timely information, reviewed by external parties to ensure fiscal integrity, hampers important decision-making by management and policymakers.