JACKSONVILLE, Fla. – Citing t he city's high fixed costs and weak pension funding level, Moody's Investors Service has downgraded the city of Jacksonville's bond rating from Aa1 to Aa2, and its special revenue bond rating from Aa2 to Aa3. The city's bond rating matters as a lower rating means higher interest rates when the city wants to borrow money. The city currently has $2.4 billion in debt affected by Moody's ratings. In it's rating update, issued Wednesday, Moody's did say the city's overall financial outlook is stable. "Assignment of stable outlook reflects the resurgence of the local economy, our expectation that the city will maintain sound reserve levels and the forthcoming implementation of the new pension reform plan," the report stated.