Moody’s downgrades city’s bond rating

NATCHEZ — The City of Natchez has received a slight downgrade to its bond rating.

The Natchez Democrat reports the Moody’s Investors Service downgraded the city’s general obligation bond rating from A1 to A2.

City financial adviser Demery Grubbs said the move should have no effect on the city’s capacity to borrow money. He said A2 remains an excellent score.

Moody’s Spokesman David Jacobson said despite the downgrade, an “A” rating is an upper- to medium-grade rating.

The Moody’s report cited reserve cash levels in the city’s general fund — calling them “marginal” in light of the budget’s dependence on sales tax and gambling revenue. It said sales tax and gambling were about 50 percent of 2011 general fund revenues for the city.