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, which leaves 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 contributed to the downgrade and are credit weaknesses. At the same time, Standard&Poor's assigned its 'A' standard long-term rating, and stable outlook, to the city's series 2009 GO refunding bonds. In our opinion, the 'A' rating
