S&P Global Ratings lowered its underlying rating on the Village of Holly , Mich.'s previously issued general obligation (GO) debt to 'A' from 'A+'. The outlook is negative. The downgrade reflects our opinion of the village?s recent one-time capital expenditures, which significantly weakened available reserves, reducing them to nominally low levels that we no longer consider comparable with those of ?A+? peers. The negative outlook reflects our view of the uncertainty surrounding the village?s financial operations for fiscal 2025 and recent management change. The rating also reflects the application of our criteria, " Methodology For Rating U.S. Governments ," published Sept. 9, 2024. The bonds are secured by the city's full-faith-credit-and-resources pledge and an agreement to levy ad valorem property
