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Burlington’s Quest for Fast Internet Slows Credit Rating

Burlington, Vermont’s most-populous city, is on the verge of losing its investment-grade bond ranking with a municipally backed project to bring high-speed Internet service siphoning taxpayers’ funds and prompting a property-tax increase.

In the Lake Champlain city’s April sale of taxable general obligations, debt maturing in November 2023 was priced to yield 4.63 percent, or about 2.9 percentage points above similar-maturity Treasuries. The yield spread grew to about 3 percentage points last week, data compiled by Bloomberg show. In 2009, the city issued similar securities maturing in 10 years at a spread of about 1.1 percentage points.