S&P Global Ratings revised its outlook on North Adams, Mass.' general obligation (GO) debt outstanding to negative from stable. At the same time, we affirmed our 'A' underlying rating on the city's GO debt outstanding. The city's full-faith-and-credit pledge secures the bonds, subject to Proposition 2-1/2 limitations. We have not made a rating distinction between the limited-tax pledge and the general creditworthiness because the ad valorem tax pledge securing the limited-tax obligation is not derived from a measurably narrower property tax base and its financial resources are flexible. The negative outlook reflects the likely revenue pressure facing North Adams over the next few years. The city's budget has little flexibility for increasing revenues or decreasing expenditures. Consequently, even small negative
