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Hybrid Work Poses Credit Risk to Cities Looking to Issue Debt

  • Fitch affirms negative outlook for Kansas City on remote work
  • Hybrid work changing the way cities fill pockets of revenue
Cincinnati, Ohio.

Cincinnati, Ohio.

Photographer: Andrew Cenci/Bloomberg

Remote working may be be a boon for many Americans. But it could lead to higher borrowing costs for some cities tapping the municipal-bond market. 

Fitch Ratings, earlier this week, affirmed its negative rating of Kansas City, Missouri, flagging remote work as a credit risk. The city anticipates a slow recovery in earnings taxes -- which is its largest source of general fund revenue -- because of increased remote work, Fitch noted.