Standard&Poor's Ratings Services has lowered its underlying rating (SPUR) on the city of Prattville, Ala.'s general obligation (GO) debt to 'A-' from 'A' , based on the city's persistent negative general fund balance resulting from operational shortfalls. The outlook is stable. The rating reflects our view of the city's: Inclusion in the Montgomery metropolitan statistical area (MSA), which serves as a regional economic base and is anchored by the presence of the state government and Maxwell Air Force Base; Good income levels, in terms of median household effective buying income; and Moderate debt levels, coupled with limited future capital needs. The city's maintenance of a negative fund balance, providing the city with limited reserves, partially offsets these strengths.
