The Fitch credit rating agency has affirmed Kansas City's AA credit rating for its outstanding general obligation bonds, and has revised its outlook from "negative" to "stable."
The agency also affirmed the city's appropriation-backed debt at A+ with a stable outlook.
Last March, Fitch had placed the city on a negative credit outlook, while Moody's and Standard and Poor's had it at a stable outlook. Over the past few weeks, city finance officials have provided information to the rating agencies on progress in the city's financial situation, particularly on pension negotiations. As a result, according to the city, Fitch revised its outlook to "stable."
Fitch also noted that the city had scaled back on a massive bond issue that Mayor Sly James had proposed last year. The agency said its change in outlook "reflects the city's revised capital plans, which are much more modest in scope than previously contemplated."
James issued a statement today on the revised outlook.
"Kansas City has chosen to directly tackle the difficult finance issues created by the national recession," he said. "Public votes have shored up revenue and created jobs. Together we are working hard to solve our pension imbalance."