One of the big three credit rating agencies has downgraded Manchester’s overall bond rating.
Fitch Ratings has lowered Manchester’s rating from AA+ to AA. The agency cites the city’s tax cap, rising pension costs and its deficit that caused the city to raise taxes beyond its cap.
Manchester owes $122 million in general bonds and about $59 million in school facilities revenue bonds. The school bond rating also dipped from AA to AA-. But Fitch kept its rating outlook at ‘stable.’
Last year, ratings agency Moody’s similarly downgraded Manchester’s credit rating.
And, this fall, Standard and Poor’s increased the city of Rochester’s credit rating to AA.