...S&P Global Ratings lowered its long-term rating on the City of Shreveport, La.'s general obligation (GO) debt to 'A' from 'A+' and lowered its rating on the city's lawfully available funds debt to 'A-' from 'A'. The outlook is negative. At the same, S&P Global Ratings assigned its 'A' long-term rating and negative outlook to the city's 2017 GO refunding bonds. The downgrade reflects our view of structural imbalance in the general fund that is characterized by underfunded pension contributions, stagnant revenues, and diminishing reserves. Shreveport's persistently large net pension liability, despite enacted changes, will continue to pose funding challenges unless the city takes actions to further reduce the liability or improve the fund's asset and liquidity position. The city has relied on reserves to close the gap between revenues and expenditures, which are expected to reduce the general fund balance below the informal target to maintain 5%-7% of expenditures. In addition, pension contributions...
