The City of Vancouver's credit rating has been downgraded.
Once an AA-Plus rating, it is now an AAA-Negative rating.
This affects how the city is viewed by potential loan partners when it comes to borrowing money for key projects. It will now be seen as a greater risk.
The announcement was made on Tuesday by Moody's Investor's Services.
Vancouver Mayor Gregor Robertson responded by saying the downgrade is simply an acknowledgement of the risks involved in taking on the construction of the Olympic Village.
"The taxpayers of Vancouver are at risk on this project, and until we get it refinanced, until the market changes, until we deal with some of these risks, that's the reality of it. They're aware of the risk that's taken place on this project. I wish we didn't have that kind of risk built in, but we do," said Robertson.
A few weeks ago, another major credit rating agency, Standard & Poor's, put Vancouver on a "credit watch" but did not alter the city's AA-Plus rating.
