City’s borrowing costs could increase

City’s borrowing costs could increase

By Juan Perez Jr. September 24, 2012 4:58 pm Comments

The City of Omaha’s AAA bond rating has been downgraded because of long-term problems with the city’s underfunded pension system.

Moody’s Investors Service announced Friday that it was moving Omaha to an AA1 rating. The agency said the city’s struggles with meeting its pension obligations was “not consistent with the expected financial practices of highly rated cities,” according to a press release from the Mayor’s Office.

Another rating agency, Standard and Poor’s, still gives Omaha a AAA rating, which means the city’s general obligation bonds are now considered “split” rated.

Comments

  1. Fire Jean says:

    Way to go Jean Stothert! Your shortsighted decision to commandeer the fire negotiations have not only cost the city millions, but now its AAA bond rating.

  2. Torsten Adair says:

    How long has Omaha had a AAA bond rating?

    How many large municipalities have a AAA rating? (Moody’s: eight. S&P: sixteen. http://www.census.gov/compendia/statab/2012/tables/12s0446.pdf)

    How much does Omaha owe? How much does it borrow in a typical year? Who buys Omaha’s GO Bonds?

  3. Facts says:

    Fireman who put is in debt and calls himself “Fire Jean.” Your bloated contracts have cost the city. It is time you get realistic and bring your compensation in line. As far as the credit rating, it takes into account the whole financial picture. Suttle’s union sweetheart deal last year would have done next to nothing to improve this overall condition. Did nothing but keep lining the union pockets.