In what is becoming a routine event, the credit ratings agency Moody's has once again downgraded Burlington's bond ratings due to the fact that city leaders have failed to determine how Burlington Telecom will repay $16.9 million to the city's checkbook.
The credit ratings agency twice downgraded the city last year, along with other city-run entities including the Burlington International Airport. The credit downgrades affect about $87 million in debt and will make borrowing money more expensive each time the city goes to the market to borrow anew or refinance debt.
"The downgrade reflects our view that recovery of the outstanding $16.9 million balance due to the city's pooled cash account from Burlington Telecom (BT) is unlikely to occur over the medium-term, if at all," Moody's noted in its release, which was issued Friday. Mayor Bob Kiss' office released the information today.
Burlington Telecom continues to rack up costs for city taxpayers as consultants and lawyers attempt to chart its future. A meeting scheduled for this week to publicly discuss BT's current status has been postponed until January 26.
Read the full Moody's Ratings Release below.