...August 18, 2020 CHICAGO (S&P Global Ratings) Aug. 18, 2020--S&P Global Ratings lowered its long-term rating to 'A+' from '##-' on Akron, Ohio's general obligation and nontax revenue debt. At the same time, S&P Global Ratings lowered its long-term rating to 'A' from 'A+' on the city's appropriation-backed debt. The outlook is negative. "The rating action reflects our view that the city's credit profile is more vulnerable to recessionary pressures brought on by the COVID-19 pandemic given its reliance on economically sensitive income tax revenue, in combination with its lower reserves and elevated fixed costs, which we believe constrain its budgetary flexibility," said S&P Global Ratings credit analyst Benjamin Gallovic. We consider the city's social risks above average compared with those of the sector given a weak socioeconomic profile and long-term risks associated with teleworking. Approximately 65% of the city's income tax revenue is collected from a withholding tax on nonresidents who...
