(Adds S&P details, Moody’s revision)
July 25 (Reuters) - The outlook for Connecticut’s New Haven, the home of Yale University, has turned negative because of its declining reserves, with a “significant drawdown” expected in fiscal 2012, Standard & Poor’s Ratings Services said on Wednesday.
The city’s general obligation bonds now are rated A-minus.
The Wall Street credit agency also cited other weaknesses, from New Haven’s historic reliance on one-time revenue raised by asset sales, above-average unemployment, large, unfunded pension and other post-employment benefit costs.
On July 13, Moody’s Investors Service also revised New Haven’s outlook to negative from stable, due to its low level of reserves and high debt burden..
New Haven does enjoy some positive features, S&P said, listing Yale University, which bolsters a “large and very diverse tax base,” with the health care, pharmaceutical and biotechnology industries. (Reporting by Joan Gralla and Caryn Trokie; Editing by Leslie Gevirtz)