Overview
- Both agencies kept negative outlooks, signaling the potential for further downgrades if structural fixes fail to materialize.
- Fitch also lowered the city’s sales tax securitization rating to AA+ from AAA, reflecting broader concerns beyond the core issuer rating.
- Analysts say borrowing will get more expensive, with one estimate putting added annual costs around $3 million to $5 million for future debt.
- The agencies credited continued supplemental pension payments as a long‑term positive but said the commitment strains the operating budget.
- Kroll warned that tapping reserves, including funds tied to the Skyway and parking meter deals, could trigger another downgrade, as City Hall factions trade blame over the outcome.