Buffalo, New York Has Credit Rating Downgraded

While the economy has been booming for most parts of the country over the last few years, rising interest rates, low savings rates, and inflation have been hitting people hard all over the place. Now, most people would think that the credit crunch that lots of folks are dealing with is just limited to individuals, but people in New York State's second-largest city are waking up to find out that bad credit can also impact their local government.

If you didn't know that was possible, all you have to do is look in downtown Buffalo at City Hall, as the City of Good Neighbors got some bad news in the mail from a credit rating agency that evaluates the creditworthiness of municipalities.

Buffalo, New York, Has Credit Rating Downgraded

S&P Global, a New York-based international financial information and analytics company that helps to evaluate the creditworthiness of local governments, has recently hit Buffalo with a downgrade in its credit rating.

Buffalo, NY General Obligation Debt Rating Outlook Revised To Negative On Weakened Finances
-S&P Global

For many years, the City of Buffalo, New York's second largest city, had maintained a long-term credit rating of A+ and was considered generally a stable and good investment. However, the rating agency has downgraded the city from a stable to a negative rating.

That negative rating is due, in part, to the huge budget hole the city has to fill, along with other missteps in handling the people's money.

While we are encouraged that S&P affirmed our A+ rating, we take the revision of our outlook very seriously... This underscores the importance of continuing to strengthen the City of Buffalo’s financial foundation, control expenditures, and pursue strategies that stabilize and grow revenues. Our office remains committed to transparency, fiscal discipline, and protecting the City’s long-term financial health.
-Barbara Miller Williams, City of Buffalo Comptroller

Just like with our home budget, a lower credit rating can increase your everyday expenses as the cost to borrow money can increase.

Hopefully, the powers that be downtown can get it together, and fast, because America's ~~second or~~ third poorest city can hardly afford to pay any more than we have been paying.