Burlington's Bond Rating Downgraded Again
Burlington's bond rating has been downgraded again.
Moody's Investors Service cites "strains on the city's pooled cash" from the financially troubled Burlington Telecom and water and wastewater funds.
The Burlington Free Press reports the downgrade means the city can still secure financing for big projects, but the cost of borrowing will be higher. It's the third downgrade in two years.
Mayor Miro Weinberger says the immediate impact will be an extra $55,000 interest payment due this year on a long-term $3 million loan.
Moody's assigned Burlington a "negative outlook" due to its reliance on short-term borrowing to maintain cash flow, as well as uncertainty from a lawsuit against the city to repossess Burlington Telecom equipment. The city-owned provider of phone, cable TV and Internet service has suffered financial setbacks.