NEW YORK (Standard&Poor's) March 6, 2009--Standard&Poor's Ratings Services lowered its standard long-term rating and underlying rating (SPUR) on Atlanta's general obligation (GO) debt two notches to 'A' from 'AA-' based on a trend of operating deficits and declining reserves during a period of strong economic growth, leaving the city with diminished financial reserves and flexibility as it enters the current economic downturn. The outlook is stable. Longer-term pressures associated with the city's underfunded pensions, police overtime, and subsidies to the sanitation and E911 funds also contributed to the downgrade and are credit weaknesses. At the same time, the rating service assigned its 'A' rating, and stable outlook, to the city's $80 million series 2009 GO refunding
