...May 2, 2024 SAN FRANCISCO (S&P Global Ratings) May 2, 2024--S&P Global Ratings lowered its long-term rating to 'A+' from '##-' on Mount Vernon, Iowa's existing general obligation (GO) bonds. At the same time, we assigned our 'A+' long-term rating to the city's $4.84 million series 2024 GO capital loan notes. The outlook is stable. "The lowered rating reflects our view of the reserve drawdown in fiscal 2023 that is moderately higher than originally expected, and the continued significant drawdowns anticipated for fiscal year 2024, which are expected to materially weaken the city's cash reserve," said S&P Global Ratings credit analyst Ying Huang. The stable outlook reflects our expectation that the city's tax base will continue to grow, and it will likely maintain strong cash reserves despite anticipated operating deficits during the two-year outlook period. If Mount Vernon's financial performance deteriorates further than expected, leading to sustained decreases in reserves to levels that...
