Moody’s to downgrade Shreveport’s bond rating

SHREVEPORT, La. — Credit agency Moody’s said it plans to downgrade the City of Shreveport’s bond rating, a move that could increase the cost of borrowing and raise interest payments for the city.

Moody’s cited Shreveport’s long-term financial obligations under a federal consent decree as a major factor in its negative outlook. The city entered the agreement in 2014 with federal and state agencies to repair its aging sewer system, which has led to repeated overflows.

Mayor Tom Arceneaux said the deadlines set in the decree were “impossible to meet” and noted that the city has already spent hundreds of millions of dollars trying to comply. According to the mayor’s office, Shreveport is now negotiating for a more realistic and sustainable plan.

City officials say ongoing improvements will