Ratings firm: Dividing Stockbridge could hurt local credit
ATLANTA (AP) — A top credit rating agency says legislation that could split up the city of Stockbridge by creating a new city of Eagles Landing would hurt the credit of local governments in Georgia.
The Atlanta Journal-Constitution reports that Gov. Nathan Deal said the legislation he signed was unlikely to affect the state’s AAA bond rating.
However Moody’s Investors Service said that the legislation was “credit negative” for local governments. The company said it set a precedent allowing the state to divide local tax bases and lower the credit quality of one city to benefit another.
Voters in the area that would become Eagles Landing still must approve the idea in November. If Eagles Landing is formed, Stockbridge would lose about a third of its population and half of its tax revenue.
Information from: The Atlanta Journal-Constitution, http://www.ajc.com