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March 28, 2024

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Fitch drops North Las Vegas bond rating, cites $22.6 million deficit

Fitch Ratings, a global credit rating firm, lowered North Las Vegas’ bond rating from AA- to A+ after analyzing the city’s financial health.

Fitch’s analysis found the outlook for the city’s $433 million in outstanding bonds is negative, triggering the firm to lower the city’s rating by one level. The A+ rating is four levels below the top rating of AAA.

The downgrade reflects the city’s continued general fund pressure, overall economic weakness and projections that show weakening cash reserves in the water and wastewater systems, according to Fitch Ratings.

North Las Vegas also faces a $22.6 million budget deficit for fiscal 2012, following a $15.3 million deficit in fiscal 2010 and a $6.7 million deficit in 2009, according to the Fitch report.

In addition, the city has a high foreclosure and delinquency rate, and unemployment – largely in the tourism and gaming markets – remains around 17 percent, well above state and national levels, the report found.

North Las Vegas’ credit rating may be lowered further if the city experiences continued economic decline, the Fitch report said.

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