Lansing's Credit Rating Downgraded By Moody's

LANSING (AP) - Moody's Investors Service has downgraded Lansing's credit rating.

The Lansing State Journal reports Friday the two-notch drop happened because of the city's dwindling financial reserves.

Lansing's rating has gone from Aa2, Moody's third-highest rating, to A1, its fifth-highest rating.

City finance director Jerry Ambrose says the downgrade impacts the interest rate Lansing would pay to borrow money.

He says city officials aren't currently contemplating borrowing money for any large projects.

Moody's reports the value of the property tax base in Lansing declined 2.2 percent in 2008, 6.4 percent in 2009 and 10.3 percent last year.