Friday, Oct. 7, 2011 | 4:15 p.m.
North Las Vegas’ bond rating was dropped today for the second time this year, from an A+ to A, due to the city's economic decline beyond previous expectations, according to Fitch Ratings.
Fitch, a global credit rating firm, lowered the city’s bond rating earlier this year from AA- to A+ and deemed the outlook negative for the city’s then-$433 million in outstanding bonds.
On Friday, the firm dropped the rating on $436.79 million in outstanding general obligation and wastewater improvement bonds and maintained a negative outlook. The city’s rating of an A is five levels below the top rating of AAA.
The city closed a budget deficit of more than $30 million this fiscal year and acting Finance Director Al Noyola said he predicts another shortfall for the 2013 budget year.
According to Fitch, “the city’s financial condition has weakened after many years of large operating deficits and several years of net deficits due in part to revenue concentration in consolidated tax receipts…”
Fitch said the ongoing fiscal distress and structural imbalance, a 32 percent decline in consolidated tax revenue and reserves at a dangerously low levels drove the ratings down.
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