Burlington’s credit rating has been lowered because of the ongoing problems with the city-owned Burlington Telecom telephone and Internet service.
Moody’s Investors Services describes its outlook for Burlington as negative.
The result of the move is that it will be more expensive for Burlington to borrow money.
Burlington has faced a financial crisis since it was disclosed that nearly $17 million in city money was used to pay Burlington Telecom bills.
Moody’s says the city’s ability to recover that money is "unlikely to occur over the medium-term, if at all."
Despite the downgrade, Moody’s says Burlington’s general fund is performing well and so the city’s credit rating remains relatively strong.