Rockford's financial outlook took a hit Monday as a investment ratings firm downgraded the city.
The city announced that Moody’s Investors Service recently downgraded the rating on Rockford’s general obligation debt to A2 from A1. They also assigned the city a negative outlook.
This rating downgrade will impact the way the city takes on debt. It will now cost Rockford more to borrow money.
Rockford Mayor Tom McNamara says the city expected a downgrade in their rating and they are working on improving their financial outlook.
"We’ve started our budget process earlier than ever and I’m confident our Finance Task Force will leave nothing on the table as we look for opportunities to develop a realistic budget,” McNamara says.
The Moody’s report noted several factors that could lead to an upgraded rating, including general fund reserve growth, expanding the tax base and strengthening socioeconomic indicators.