Carmel's 'rapidly increasing debt' leads to drop in credit rating

After examining Carmel's "rapidly increasing debt burden," Standard & Poor's has downgraded the city's long-term credit rating, which could impact future interest rates.

In a letter sent to the city Tuesday, the agency said the rating on property-tax supported debt had been lowered a step from AA-Plus, its second-highest rating, to AA.

The letter noted the city has accrued $300 million in debt in the past three years, that annual debt payments will grow 71 percent by 2022, and the city has announced plans to pass more bonds in coming years.

The agency said it was particularly concerned that the city had to move money between funds to pay a portion of debt service in 2015 after overestimating tax revenues.

Read more: https://www.indystar.com/story/news/local/hamilton-county/2017/11/16/citing-debt-s-p-downgrades-carmels-long-term-bond-rating/867120001/