Fitch Ratings said it downgraded to A-minus from A its rating on the city of New Haven, Conn.'s approximately $500 million in outstanding general obligation bonds.

Fitch said it assigned an A-minus rating to the city's $39 million GO bonds, series 2013A.

The rating outlook remains negative.

The bonds are general obligations of the city backed by its full faith, credit, and unlimited taxing power.

The downgrade reflects the city's weakened financial flexibility. While the city has shown a willingness to raise recurring revenues, its dependence on state aid, exposure to school deficits and negative balances in special revenue and internal service funds exacerbate the general fund's depleted reserve position.

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