Updated: 07/31/2013 11:59 AM KSTP.com By: Joe Mazan
Minneapolis has been dealt a credit-rating setback.
Moody's Investor Service said Monday it was knocking the city's credit rating down a notch.
It means the city is likely to face higher interest rates when it borrows for construction projects.
The City of Minneapolis says the downgrade was based mostly on high pension liabilities.
The city did earn a "stable" outlook based on expectations of a strengthening tax base and other considerations.
Minneapolis Mayor R.T. Rybak had touted his city's return to a top credit rating a few years ago. Rybak is stepping down after his third term ends.
The city's chief financial officer questioned Moody's methodology and called the downgrade "an overreaction."
(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)