Moody's downgrades Milwaukee's bond rating

CREATED Apr 16, 2012

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MILWAUKEE- Moody's Investors Service has slightly downgraded Milwaukee's bond rating because of concerns about the city's poverty rate.

Deputy Comptroller Mike Daun said Monday the ratings agency dropped the city from Aa1, with a negative outlook, to Aa2, with a stable outlook.

Daun says that matches the city's AA rating, with a stable outlook, from Standard & Poor's, which did not change its rating.

As a result, Daun says the Moody's downgrade is not expected to have any significant effect on the interest rates the city pays on its bonds.

The Milwaukee Journal Sentinel reports Moody's gave positive marks to the city's fiscal management, noting the strength of its reserves, but expressed concern about the outlook for the property tax base and about cuts in state aid.