Aitkin, MN GO Debt Lowered To #A+# On Reduced Reserves And Weakened Financial Management Assessment

Stocks and Financial Services Press Releases Wednesday June 13, 2018 09:24
CHICAGO--13 Jun--S&P Global Ratings

CHICAGO (S&P Global Ratings) June 12, 2018--S&P Global Ratings lowered its long-term rating on Aitkin, Minn.'s outstanding general obligation (GO) bonds one notch to 'A+' from 'AA-'. The outlook is stable.

"The downgrade reflects the decline in the city's available reserves, including available cash in the liquor fund to below 75% of expenditures, and weakening in its financial management assessment," said S&P Global Ratings credit analyst Daniel Hughes. "The stable outlook reflects our opinion that the city will continue to maintain very strong budgetary flexibility and liquidity despite the decline in reserves."

The bonds are GOs of the city, and are secured by the city's full faith, credit, and taxing powers, without limitation as to rate or amount. The city anticipates that the debt service will be paid from a combination of net water and sewer revenues and property taxes. However, we rate to the city's GO pledge.


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