Posted: Oct 9, 2012 7:25 PM by CJ, The Associated Press
SACRAMENTO, Calif. (AP) - One of the nation's top credit rating agencies will review dozens of California cities for possible credit downgrades amid mounting concern over municipal bankruptcies and bond defaults.
Moody's Investors Service announced Tuesday that it would scrutinize nearly 30 California cities for possible downgrades.
The announcement follows an August report in which Moody's predicted more municipal bankruptcies and defaults in California, the nation's largest issuer of municipal bonds. Moody's warned that some cities are turning to bankruptcy as a new strategy to tackle budget deficits and abandon obligations to bondholders.
Three California cities- Stockton, San Bernardino and Mammoth Lakes- filed for bankruptcy over the summer, although Mammoth's filing was the result of losing a lawsuit.
Moody's, which rates 95 California cities, also will review San Francisco and Los Angeles for upgrades.
(Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)
PLEASE HELP US MODERATE COMMENTS
Offensive or inappropriate comments are subject to removal. To report a comment, please e-mail us at email@example.com, and include the name of the story and information on the comment.
Thank you! KSBY.com
Get deals up to 80% off here!
Find the lowest gas prices in your area
Submit your photos to KSBY
Check out our calendar of events
Watch Daybreak Web Videos in full
Save with Hot Deals across our counties!
Events across the Central Coast
Follow The CW5 on Facebook.
The KSBY online public file.
What do you think? Leave us your feedback.
KSBY is your official CA Lottery station for San Luis Obispo and Santa Barbara Counties