Skip to main content

Moody's downgrades Minneapolis credit rating

  • Author:
  • Updated:
    Original:

The city of Minneapolis was hit with some bad financial news Monday when Moody's Investors Service downgraded the city's credit rating on its outstanding general obligation bonds, from AAA to Aa1, the Star Tribune reports.

The downgrade was due largely to the city's $679 million of outstanding general obligation debt, the newspaper noted.

Moody's cites other challenges for the city: declining property values, high pension liabilities, sizable fixed costs, dependence on state revenue and above average debt levels.

The move was a bit of blow to Mayor R.T. Rybak, who has taken some credit for helping to turn around the city's finances over the years, the Star Tribune reported. It was just three years ago that the city got its AAA rating back with Moody's, after it had been stuck with a Aa1 rating since 2001, the newspaper notes. Rybak announced in December that he would not seek a fourth term as mayor.

Moody's also cited some Minneapolis strengths:

-- Role as a Midwestern economic center with a sizable tax base that benefits from diverse employment opportunities and institutional stability in government, education, and health care

-- Well-managed financial operations, including comprehensive multi-year planning and institutionalized reporting mechanisms

-- Demonstrated willingness to increase property taxes and implement budgetary adjustments in order to maintain or replenish reserves despite revenue and expenditure pressures

-- Relatively conservative debt portfolio with modest variable rate debt and no exposure to derivatives

Moody's report offered some good news for the state's finances and upgraded Minnesota's financial outlook from "negative" to "stable."

Minnesota's bond rating of Aa1 remains the same.

Next Up

FWDqyh6UEAENgIG

80 mph winds, large hail possible with severe storms in MN

A severe thunderstorm watch is in effect for much of the state until 3 a.m. Saturday.

290376311_5009722282489162_198055240351933487_n

30 people evacuated as flooding hammers small town

It's assumed that at least eight inches of rain fell in Randall, with more heavy rain expected Friday night into Saturday morning.

Intersection in Rochester.

Boy dies in motorcycle crash in Rochester

Police are investigating as of Friday afternoon.

Tab2FileL (13)

Numerous severe storms likely in Minnesota Friday night

Watch the video for the full details with meteorologist Sven Sundgaard.

court room

Teen pleads guilty in shooting death of 15-year-old girl in Columbia Heights

Damico Jamal-Tokyo High will receive a sentence in juvenile court, along with an adult prison sentence.

Screen Shot 2022-04-25 at 11.00.01 AM

Walz wants to use surplus money to send direct payments to Minnesotans

It's a renewed effort from a previous proposal from Walz and Lt. Gov. Peggy Flanagan's supplemental budget in January.

Ron Johnson

Jan. 6 committee says aide for WI senator tried to give fake elector info to Pence

The attempt was discovered through text messages in the ongoing public hearing held by the Jan. 6 select committee.

Stock U of M sign

Minnesota State colleges, U of M boosting tuition again

The Minnesota State system's Board of Trustee's approved the increase Wednesday.

covid

Minnesota's COVID-19 update for Friday, June 24

The next daily update will be provided Monday, June 27.

Pro choice rally

Walz, Jensen react to historic Supreme Court reversal of Roe v. Wade

After voting to overturn Roe, conservative Justice Clarence Thomas has hinted contraception and same-sex marriage protections should follow.

16362 County Rd 81, Maple Grove, Minnesota - October 2021 (4)

2-year-old killed in crash on County Road 81 in Maple Grove

The crash occurred Thursday evening on County Road 81.

police tape

BCA issues new details about St. Michael standoff, shooting

New details say a St. Cloud police officer struck the suspect with gunfire.

Related