NEW YORK - Moody's Investors Service has downgraded to A3 from A2 the rating on the city of North Las Vegas, Nev.’s $453 million of outstanding limited tax general obligation debt. The outlook for the rating remains negative.
The downgrade to A3 from A2 reflects further weakening of the city's credit profile due to persistent budgetary challenges and a lack of financial flexibility that could persist for many years to come, compounded by the absence of a meaningful economic recovery in the region. The negative outlook reflects Moody's expectation that the city will remain extremely challenged in its efforts to achieve structural fiscal balance in the near- to medium-term, especially in light of continued deterioration of the city's tax base.
