CHICAGO --Standard & Poor's downgraded LaSalle, Illinois' general obligation rating two notches to reflect its revised rating criteria and the city's negative fund balance.
The rating was downgraded to BBB from A-minus. The outlook is stable. The report was published Aug. 29.
"The rating reflects our assessment that the city's economy and budgetary flexibility are very weak," said Standard & Poor's analyst David Smith. "This is somewhat offset by the city's very strong liquidity."
LaSalle is located on the Illinois River in north-central Illinois, about 90 miles southwest of downtown Chicago. It runs along interstates that provides access to the rest of the Chicago metropolitan area and to other major metropolitan areas of Rockford to the north and Bloomington-Normal and Peoria to the south.