Moody’s Investor Services has downgraded the city’s credit rating because of pension liabilities and property value decreases, among other factors.
Minneapolis previous had the top rating from Moody’s, a score of Aaa. It has now been downgraded to Aa1, but with a stable outlook. Aa1 is the second best rating.
“The city's rating was placed on review for downgrade due to its large adjusted net pension liability relative to its rating category as part of our new approach to analyzing state and local government pension liabilities,” Moody’s wrote.