Fitch, the credit rating agency, warned the state of Florida that its swift decision to dissolve Disney’s special district may lead to the downgrading of the credit of other districts in the state. This would raise the cost of borrowing and cast doubt on the state’s creditworthiness. Maybe DeSantis and the legislature should have matters through more carefully.

One of the nation’s leading bond rating agencies warned Thursday that if the state of Florida doesn’t resolve a conflict over its decision to repeal Walt Disney World’s Reedy Creek Improvement District and its obligation to investors, the move could harm the financial standing of other Florida governments.

Fitch Ratings posted the alert late Thursday on its Fitch Wire web site, nearly a week after Gov. Ron DeSantis signed into law the measure dissolving the special taxing district that governs Disney property by June 1, 2023.

Reedy Creek Improvement District holds nearly $1 billion in bond debt and last week Fitch issued a “negative watch” because of the uncertainty around how that debt will be paid and by whom.

Read more at: