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Moody's Ratings, a credit research agency, is reporting a downgrade in New Orleans' credit score.
The city previously had an A3 Moody's credit rating, an "upper-medium grade" with low credit risk. Moody's now gives New Orleans a Baa2 credit rating, two points lower, indicating moderate credit risk.
The Louisiana Legislative Auditor's Office says Moody's based the downgrade on the city's $160 million budget deficit for 2025 and a possible $222 million deficit for 2026.
The lower credit score will make it harder for New Orleans to borrow funds, especially by selling bonds.
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