Another credit agency has issued a warning that the de-annexation of Stockbridge to partially form a city of Eagle's Landing could have negative impacts on bonding in the state.
S&P Global Ratings said Thursday that Georgia’s “institutional framework” score could be affected if creating cities by taking portions of already established municipalities becomes a trend and the state or courts fail to address how debt is apportioned in the newly formed towns.
“Our IF profile could weaken for cities based on our views of weakened predictability and, potentially, system support should similar actions become more frequent without considerations for overall operations and liabilities,” the agency wrote.
Moody's issued similar warnings earlier this month after Gov. Nathan Deal signed legislation that would allow the de-annexation of Stockbridge and a November referendum on cityhood for Eagle's Landing.