California’s Fifth Largest City Has Credit Rating Cut by S&P

Fresno, California, had its bond rating cut three levels by Standard & Poor’s, which said the state’s fifth most-populous city has almost depleted its reserves amid the economic decline.

The city’s issuer credit rating was lowered to A from AA and to A- from AA- on its lease-revenue bonds, S&P said in statement. The city has $365 million of lease-revenue bonds and $174 million of pension bonds outstanding. The outlook is negative, meaning a further downgrade is possible.