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Moody's: More Calif. Cities At Risk Of Bankruptcy

MOODY'S: MORE CALIF. CITIES AT RISK OF BANKRUPTCY

BY HANNAH DREIER AND GOSIA WOZNIACKA
ASSOCIATED PRESS
Aug 17, 7:12 PM EDT

SACRAMENTO, Calif. (AP) -- One of the nation's top credit rating agencies said Friday that it expects more municipal bankruptcies and defaults in California, the nation's largest issuer of municipal bonds.

Moody's Investors Service said in a report that the growing fiscal distress in many California cities was putting bondholders at risk.

Read more: http://hosted.ap.org/dynamic/stories/U/US_CALIFORNIA_BANKRUP...




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From the article noted in OP:

"Three California cities - Stockton, San Bernardino and Mammoth Lakes - have filed for bankruptcy so far this year. They are not likely to be the last, Moody's said.

The agency also will examine the outlook for municipal bonds in other troubled states, according to Robert Kurtter, managing director of public finance at Moody's.

Moody's would not say which states it will review, though Kurtter mentioned Michigan and Nevada as possibilities. Friday's report noted that cities across the country are in financial distress but said that a greater share of bankruptcies are expected in California."

Yep!!

Stay on it Qwerk