Moodys Takes a Second Look at California Cities
I talked about Stockton, California’s bankruptcy here and predicted the muni bond rating agencies would review California cities. As expected, they did ==>
“One of the top U.S. credit rating agencies said Friday it will begin a wide-ranging review of municipal finances in California because of what it sees is a growing threat of increased city bankruptcies and bond defaults.”
Moody’s said, “To summarize, we expect … more bankruptcy filings and bond defaults among California cities reflecting the increased risk to bondholders as investors are asked to contribute to plans for closing budget gaps.”
Ya think? And who will loan to California cities now that they have poisoned the municipal well?