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Annapolis bond rating takes a hit

Fitch Ratings of New York, one of the three major bond-rating services, said it downgraded the rating of $92.2 million of Annapolis’ general obligation bonds to AA+ from the former AAA rating.

Fitch said the downgrade “reflects the city’s diminished financial flexibility, as evidenced by declining reserves, a constrained liquidity position, and the current debt restructuring to achieve cash flow savings.” However, the rating outlook is “stable,” the agency said, noting that a new city administration has “implemented more stringent internal controls and reporting” than in the past.

Fitch also gave an AA+ rating to $38.1 million worth of general obligation bonds that the city intends to sell on March 10.