Fitch downgrades Fort Myers

FORT MYERS -- Fitch Ratings downgraded bonds tied to the city of Fort Myers' utility system this week from “AA-” to “A+”, an agency release shows.

The key drivers behind Fitch's downgrade were the utility system's “very high debt levels,” which Fitch expects will increase in the future, and a weakened local economy, the result of “notable housing market stress” and continued struggles with unemployment.

Bond ratings impact the amount of interest a borrower must pay on outstanding debt. The downgrade on these utility bonds will likely increase Fort Myers' future interest payments. Still, an “A+” rating is firmly in investment-grade territory, six notches away from a “BB+” or non-investment-grade rating.