The City of Butler’s General Obligation Credit Rating has once again been downgraded by S&P Global Ratings.
The lowering of ratings on two general obligation 2015 bonds two notches from BBB to BB+ was made as a result of “weak liquidity” and a “lack of planning” to cover liabilities.
The city also remains on a negative credit watch.
The liability determined to be most concerning is the city’s guarantee of a $2 million line of credit in connection with the Centre City hotel project. Although grant funding will be the primary source of payment, those funds will not be released until the project is finished. The completion date for the hotel has been pushed back at least twice.
The city received notification in June of a similar downgrading of credit rating by S&P three notches from A to BBB.
Written By: Ryan Saeler for the Butler Radio Network
