Moody's Downgrades Baltimore's Credit Rating to Aa3, Citing Declining Reserves
Moody’s, a prominent credit rating firm, has downgraded Baltimore City’s bond rating from Aa2 to Aa3. This downgrade is attributed to a consistent decline in financial reserves across various city government operations, primarily within the utility and internal service funds. According to Moody's, the city's government-wide balance sheet has continued to deteriorate since the COVID-19 pandemic, despite previous efforts to stabilize reserves. Economist Anirban Basu noted that this downgrade is concerning as it signals a weakening financial position for the city. Baltimore Mayor Brandon Scott's office acknowledged the downgrade, clarifying that it was due to temporary drawdowns in utility reserve funds. The Mayor's office emphasized the city's overall fiscal strength, noting improvements in the General Fund's financial performance across most metrics and highlighting that the Rainy Day Fund remains at its highest historical level. Moody's, however, shifted Baltimore's outlook from negative to stable, suggest... 
