Home » NEWS » Moody's cuts Coast city's credit rating, cites cash reserves

Moody's cuts Coast city's credit rating, cites cash reserves

GULFPORT — A credit agency has cut Gulfport’s rating by a notch.

Moody’s Investors Service says the city’s cash reserves are suffering because of hurricane recovery projects the city hasn’t collected federal money for and because sales tax collections are lagging.

John Kelly, Gulfport’s chief administrative officer, tells the Sun Herald the lower rating means the city could pay more if it wants to borrow money. But the city doesn’t currently have any borrowing plans.

The Federal Emergency Management Agency owes Gulfport $15 million for projects completed to help the city recover from 2005’s Hurricane Katrina.

Kelly says $7 million of that amount is “in the pipeline” and could arrive soon.

Sales tax collections, which make up 40 percent of the revenue of Mississippi’s second-largest city have also fallen.

BEFORE YOU GO…

… we’d like to ask for your support. More people are reading the Mississippi Business Journal than ever before, but advertising revenues for all conventional media are falling fast. Unlike many, we do not use a pay wall, because we want to continue providing Mississippi’s most comprehensive business news each and every day. But that takes time, money and hard work. We do it because it is important to us … and equally important to you, if you value the flow of trustworthy news and information which have always kept America strong and free for more than 200 years.

If those who read our content will help fund it, we can continue to bring you the very best in news and information. Please consider joining us as a valued member, or if you prefer, make a one-time contribution.

Click for more info

About Megan Wright

Leave a Reply

Your email address will not be published. Required fields are marked *

*