Report: Moody's Downgrades City of Miami Bond Rating to 'Negative'

Categories: News, Politicks
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Concern over a looming budget gap and leadership turmoil has led Moody's, the bond rating agency, to downgrade its outlook on the City of Miami's $226 million in obligations from "stable" to "negative," according to an investor's report obtained by blogger Al Crespo. The agency also downgraded the city's tax and general obligation bonds, the report says.

Pat Santangelo, spokesman for Mayor Tomas Regalado, said he couldn't confirm the accuracy of the report; Moody's press desk didn't return a call from Riptide. The document, which is dated this past Friday, looks legit, though. If it is, which seems likely, there's big trouble for a city already reeling from lost revenues, an SEC investigation, and the sudden resignation of City Manager Tony Crapp Jr. last week.

In the document obtained by Crespo, Moody's cited Crapp's resignation in the downgrading, noting that "turnover in key city managerial positions at this time of fiscal instability is significant."

The report also notes the city has recorded deficits in five of the last six years, faces fiery battles with labor unions, and has seen revenues plummet thanks to a severe local housing crisis.

Santangelo says Crespo's report is the first he's heard of the downgraded ratings. "I can't confirm or deny if it's true because I hadn't heard about it until now," he says. "But I also haven't spoken to the mayor about it."

When Regalado appointed Crapp's replacement, Johnny Martinez, last week, he sought to reassure investors and ratings agencies like Moody's, saying, "We are a stable government."

We'll update this post when we hear back more from Moody's or City Hall.

Here's the full report, via Al Crespo's blog:

Research Document

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11 comments
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Steal from City
Steal from City

Rating agencies got most of the story. Mayor Regalado is clueless. He hires his friends and family then they steal the City blind.

Mayor hires relatives
Mayor hires relatives

City of Miami is losing $140,000 per week. Nonetheless Regalado continues to hire and promote his friends and family.

Ongoing criminal enterprise
Ongoing criminal enterprise

Ongoing criminal enterprise.City of Miami goes into business with illegal billboard and ad companies.

Being investigated?

Old man
Old man

Dottering old man Regalado and his corrupt "friends and relatives" inspire no confidence from rating agencies.

$125,000 per day loss
$125,000 per day loss

Tomas Regalado has ignored the City's hiring freeze by hiring a bunch of low IQ friends and family members.

City is losing $125,000 per day.

Regalado is senile
Regalado is senile

Ex-City Manager Carlos Migoya and novice idiot Ex-City Manager Tony Crapp were appointed by Tomas Regalado. Regalado fiddles as the City burns through money and assets.

Junk rating...

Miami liars
Miami liars

Al Crespo and his Crespogramreport are getting E-mails, documents and reports days and weeks before the Herald and other media.

If it is true Moody's has downgraded the debt of the City of Miami that would be an acknowledgement that ex-Mayor Manny Diaz, ex-CFO Larry Spring were liars.

nevernot
nevernot

Why is Mr. Crespo all alone better at reporting on local politics than the New Times and The Herald? You guys are doing better but only when compared to the inept reporters in the pocket of Regalado at The Herald. You're still light years behind local bloggers, lone men researching and reporting from their homes without the benefits of a major publication backing them.

Losers
Losers

City of Miami is losing $1 mil per week.

Bankruptcy soon
Bankruptcy soon

Crespogramreport.com gets the E-mails, documents and reports days and sometimes weeks before the Miami Herald.

If Moody's did downgrade Miami's debt that would confirm the most pessimistic projections of the bloggers.

The City of Miami is losing over $1 MILLION per week.

P_Nis
P_Nis

Once again a local blogger beats the mainstream media to the story.  Well done Mr. Crespo!

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