Another Credit Downgrade For New Haven

NEW HAVEN, CT — A second credit rating agency has dinged New Haven's rating. Fitch Ratings dropped New Haven two levels to a BBB rating from an A-. The move comes amid plans to refinance some of the city's debt.

Fitch also changed its rating outlook from stable to negative. The reasoning was that its unclear if city management will be able to produce a balanced budget. The city is looking at a projected $13 to $15 milloin budget for fiscal year 2018.

"The city closed fiscal 2017 with a deficit and officials expect fiscal 2018 operations to result in an increase to the deficit despite a practice of using one-time revenues from debt restructurings to subsidize operations in both fiscal years," Fitch said in its report.

S&P recently downgraded its rating to BBB+

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