THE IMPORT OF A WALL STREET BOND RATING DETERIORATION: MAYOR WILLIAM J. HEALY, II IS NO MIRACLE WORKER?

Not good news for Canton's financial rating is a recent report (December 17, 2010) on the wire services as follows:

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings downgrades the following rating Canton, Ohio's (the city) limited tax general obligation (LTGO) bonds as a part of its continuous surveillance effort:

--$655,000 LTGOs series 2001 downgraded to 'A+' from 'AA-'.

The Rating Outlook is Stable.

RATING RATIONALE:

--The downgrade to 'A+' reflects the city's weakened financial position as reflected in erosion of general fund reserves due to softening of economically sensitive revenue sources. Somewhat offsetting this concern is management's demonstrated ability to address ongoing spending pressures and volatility in general fund revenues.

--The local economy is challenged as reflected in weak wealth and employment indicators, which is expected to exert downward pressure on the city's tax base and income tax receipts. (emphasis added)

The SCPR recalls how the then newly elected William J. Healy, II related to The Report what a financial mess that his predecessor Janet Creighton had left Canton in.

In hindsight, it seems as if Healy was setting himself up to be some kind of financial/economic/business miracle worker who swooped into town and saved Canton from a sure financial/economic disaster.  The Report's take however is that Creighton left Canton is decent shape and it is Healy himself who has presided over the wasting away of Canton's financial and economic viability and, perhaps, with the diversion of some capital reserves to city operations, the erosion - over time - of Canton's infrastructure.

The question now becomes whether or not the wire report set out above is a leading indicator of more bad news to come.

Who will Healy be blaming for that?

Of course,  the general downturn in the economy.

And he could be correct.

But Canton's continuing decline does establish once and for all that there is nothing special about the leadership qualities of  Healy as he tried to portray in his campaign against Creighton.