Fitch lowers rating on Atlanta water and sewer revenue bonds

<p>A New York credit rating agency has lowered the rating on some of Atlantas revenue bonds because of the citys inability to implement a hike on water and sewer rates to meet its debt and operating obligations.</p><p>Fitch Ratings said Friday it lowered the rating on Atlantas $1.7 billion in water and sewer revenue bonds to a lower degree of investment grade. Fitch also changed its rating outlook on the citys $238.5 million in general obligation bonds to negative from stable.</p><p>In making its decision, Fitch cited the impasse over the citys efforts to hike water and sewer rates.</p><p>Earlier this week, Mayor Shirley Franklin vetoed water and sewer rate increases approved by the City Council because she said they would not provide enough revenue to pay for $3.2 million in improvements to the citys sewer system.</p><p>The council voted to hike water and sewer rates for the average household by 13.7 percent in 2004. Franklins plan called for a 45 percent rate increase in January.</p><p>Fitch said it would review its action after the city discusses the matter again next month.</p>