“Citing a higher than average foreclosure rate, Moody’s Investors Service assigned a negative outlook for the city of St. Petersburg.
The negative outlook was part of an Oct. 3 report from Moody’s that also affirmed the city’s Aa2 issuer rating, or a measure of the city’s ability to meet its obligations.
The affirmation of the Aa2 issuer rating reflects the city’s sizable tax base, modest debt burden and adequate financial position, the report said.
Among the challenges facing St. Petersburg are property tax revenue declines that drive structural imbalance, the report said.
The negative outlook “reflects our expectation that the city will remain challenged in the near term to restore structurally balanced operations,” Moody’s wrote.
“Additionally, we believe that the city’s higher than average foreclosure rate could slow economic recovery,” the report said.
Continued economic recovery evidenced by lower foreclosure rates and growth in property values could make the city’s rating go up or cause the outlook to be revised.”