By James Clark | email
LUBBOCK, TX (KCBD) – Littlefield city hall gets a bad credit rating from Fitch. Fitch evaluated Littlefield's 1997 bonds with $1.2 million of debt still to paid. It says the city did make its February 2010 payment on time and is likely to make the upcoming August payment. However, Fitch warns investors that Littlefield needs a financial solution to the city's debt service soon.
Fitch grades Littlefield as a "BB" with a negative outlook. The majority of Littlefield's debt is for a city-owned detention center, which had been self-supporting. But, out-of-state prisoners left the facility in 2009, and with them so did the revenue. Despite the city's efforts, the Bill Clayton Detention Center remains vacant.
The 1997 bonds are only a portion of the city's debt.
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