New Orleans downgraded to A3 by Moody's

Moody's Ratings said it is concerned about the city government's narrowing reserves. Bloomberg NewsMoody's Ratings downgraded New Orleans' issuer, general obligation unlimited tax and general obligation limited tax ratings to A3 from A2 Wednesday, citing a drawdown of reserves. The downgrade is "driven by the significant, unbudgeted use of reserves in support of operations and one-time events in recent years that has materially narrowed the city's financial position," Moody's said. New Orleans is rated A-plus with a stable outlook by S&P Global Ratings and A with a negative outlook by Fitch Ratings. The downgrade of New Orleans comes as Louisiana government's revenues were down in the fiscal year that ended June 30.