Moody’s credit agency has been on a worldwide tear – downgrading banks, global investment firms and even entire countries. Their next targets? Fresno, Huntington Beach and Santa Monica, to name three.
Moody’s announced Tuesday that it will be reviewing 30 of the 95 California cities it monitors for falling tax revenue, increased spending and other factors that could lead to bankruptcies and bond defaults. A number of cities in California have already filed for bankruptcy or are considering it, including Stockton, San Bernardino and Atwater.
What does it mean for a city to be placed on the “downgrade” list? Does it affect credit ratings and borrowing costs? How can a struggling city improve its financial outlook?
Matt DeBord, KPCC Reporter; writes the DeBord Report KPCC.org