Moody’s Investors Service last week downgraded the city of Reading to Baa2 from Baa1 as the city plans to issue $36.7 million of general obligation debt this week. The action affects $68.6 million of debt. Reading has nearly $220 million of long-term debt outstanding. The downgrade is due to historical budget deficits and limited liquidity.
A year ago, the city entered into Pennsylvania’s distressed municipalities program, called Act 47, which places local governments under state oversight to help cities and towns regain fiscal strength.