Fitch downgrades Milwaukee bonds one notch to AA

Oct 2 (Reuters) - Fitch Ratings on Tuesday downgraded its ratings on Milwaukee, Wisconsin's various unlimited tax general obligation bonds to AA from AA-plus and revised its ratings outlook on the city, Wisconsin's largest, to stable from negative.

"The one-notch rating downgrade reflects the city's highly restrictive revenue environment, lingering economic stress and reserve levels that are below-average for the rating category," Fitch said in a report.