Oct
06
Dallas Downgraded by Fitch as Pension Fund Liabilities Swell
By-
Ratings retains a negative outlook from credit arbiter
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Unfunded liability rise to 40% of city’s general fund
Dallas’s rating on about $1.7 billion of general-obligation bonds was cut one level to AA from AA+ by Fitch Ratings, which cited growing pension liabilities for the police and fire department pension system.
Fitch kept a negative outlook on the rating, meaning it could be reviewed again for additional cuts. The total unfunded pension liability to the city’s general fund had risen to 40 percent, according to a Fitch statement. The amount has risen because of increasing losses on speculative real estate investments and most recently a rush of retirees making calls on deferred pay. The pension is attempting to slow the flow of payments…
Dallas Downgraded by Fitch as Pension Fund Liabilities Swell
