The breakdown in settlement talks between Burlington, Vt., and Citibank over a $33.5 million lawsuit over city-owned Burlington Telecom is a credit negative for Vermont’s largest city, Moody’s Investors Service said Monday.

Last week, federal mediator Richard Cassidy told the U.S. District Court for the District of Vermont in Burlington that talks had broken down. Citibank’s claim is for unpaid portions of a lease-purchase agreement Citi extended to Burlington in 2007 for the city to provide the broadband cable service.

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.