Dougtone via Flickr
January 31, 2013
Moody's credit rating agency downgraded Binghamton's long-term debt from a rating of A1 to A2. They also gave a less-than-perfect rating to new, short-term debt the city plans to issue.
A downgraded credit rating can make it make it more expensive for a municipality to borrow money.
According to Moody's, the decision was made because the city's financial performance over the past two years cannot be verified. Binghamton officials have not submitted a financial statement since 2010.
Binghamton Mayor Matt Ryan says the delay was mainly due to a state audit that was completed in 2011 and that the city is surprised by how quickly the downgrade came through.
"They explained that there's a very different regulatory environment now," Ryan said.
Ryan says he expects to submit a financial statement by the end of March, and that should resolve the issue.