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Moody's targets California cities for downgrades
Yahoo News ^ | 11 hrs ago

Posted on 10/10/2012 5:27:33 AM PDT by DeaconBenjamin

One of the nation's top credit rating agencies announced Tuesday that it will review dozens of California cities for possible downgrades amid mounting concern over municipal bankruptcies and bond defaults.

Moody's Investors Service will scrutinize the ratings of bonds in 30 California cities. The agency already had downgraded eight municipal pension obligation bonds.

"California cities operate under more rigid revenue raising constraints than cities in many other parts of the country. Combined with steeply rising costs, these constraints mean that these cities will likely recover more slowly than their peers nationally, even if the state's economic recovery tracks the nation's."

Cities under review include Danville, Santa Monica, Sacramento and Fresno. Moody's will examine an array of factors, including falling tax revenue and increased spending.

Downgrades would increase borrowing costs for cities and could hinder their ability to borrow.

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.

Last week, the agricultural city of Atwater declared a fiscal emergency and became the latest embattled community to consider bankruptcy.

Moody's, which rates 95 California cities, said it also will review San Francisco and Los Angeles for upgrades.

The other cities that Moody's has targeted for possible downgrades are Azusa, Berkeley, Colma, Downey, Glendale, Huntington Beach, Inglewood, Long Beach, Los Gatos, Martinez, Monterey, Oakland, Oceanside, Palmdale, Petaluma, Rancho Mirage, Redondo Beach, San Leandro, Santa Ana, Santa Barbara, Santa Clara, Santa Maria, Santa Rosa, Sunnyvale, Torrance and Woodland.

(Excerpt) Read more at news.yahoo.com ...


TOPICS: Business/Economy; Culture/Society; Government; US: California
KEYWORDS:

1 posted on 10/10/2012 5:27:37 AM PDT by DeaconBenjamin
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To: DeaconBenjamin

SHOCKED ! UNEXPECTED ! SURPRISING !


2 posted on 10/10/2012 5:29:49 AM PDT by American Constitutionalist
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To: DeaconBenjamin

it would take less ink and effort to downgrade the entire state.


3 posted on 10/10/2012 5:31:02 AM PDT by USNBandit (sarcasm engaged at all times)
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To: DeaconBenjamin

It’s always raining in sunny California.


4 posted on 10/10/2012 5:39:25 AM PDT by Jonty30 (What Islam and secularism have in common is that they are both death cults.)
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To: DeaconBenjamin

Holy cow! Santa Barbara? Yikers!


5 posted on 10/10/2012 5:40:10 AM PDT by RexBeach (Mr. Obama Loves To Spend My $$$$$$$$$$$$)
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To: RexBeach

LA for an UPGRADE?....NFW


6 posted on 10/10/2012 5:41:09 AM PDT by ken5050 (Barack Obama: An empty suit sitting in an empty chair...)
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To: EveningStar

ping


7 posted on 10/10/2012 5:45:31 AM PDT by bunster
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To: DeaconBenjamin
"....even if the state's economic recovery tracks the nation's."

If that's the case, they're definitely screwed.

8 posted on 10/10/2012 5:45:31 AM PDT by SnuffaBolshevik (In a tornado, even turkeys can fly.)
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To: SnuffaBolshevik

I’m Stuned I tell ya.

Now, let’s look at the towns that are run by Republicans and compare it to the towns run by Democrats.

I bet the numbers would be very interesting.

And it would make a great camapign ad for Romney.


9 posted on 10/10/2012 5:54:56 AM PDT by EQAndyBuzz
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To: RexBeach

How’d Moody’s miss Guadalupe, Lompoc, and Goleta?


10 posted on 10/10/2012 5:54:56 AM PDT by ptsal (E)
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To: ptsal

How about Cucamonga(sp)?


11 posted on 10/10/2012 6:09:04 AM PDT by RexBeach (Mr. Obama Loves To Spend My $$$$$$$$$$$$)
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To: DeaconBenjamin

Overall, California COULD slow the slide somewhat if they would ditch, for good and all, the “train to nowhere” that is slated to be built somewhere up the San Joaquin Valley.

Poorly conceived, poorly placed, and with no discernable economic value. Commuter planes are already in place, and were the Transportation Security Administration procedures to be streamlined to perform in an effective manner, the volume would almost insure, that high-speed inter-urban passenger rail was totally obsolete.

If the functioning tracks and right-of-way do not already exist, then there is no economical way to put them in place now.

Another thing that California could do, but has no will to do so, is a little self-help on energy production and distribution. Opening up the off-shore oil wells could vastly improve their supply of petroleum and natural gas to power their energy demands, and restricting the application of the California Air Regulatory Board to the parts of California where there is a problem, would do much to reduce the regulatory restrictions that is choking off productivity in what is probably the one state in the US with the greatest endowment of natural resources.

As it is, California is rapidly descending into a Third-World country, with the economic clout of Greece.

Can the rest of the United States just kick California OUT of the US?


12 posted on 10/10/2012 6:09:05 AM PDT by alloysteel ("You have attributed conditions to villainy that simply result from stupidity".)
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To: DeaconBenjamin

No problem, just sell more bonds at a higher interest rate, right?


13 posted on 10/10/2012 6:10:20 AM PDT by Huskrrrr
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To: alloysteel

It’s been explained on this site, that if California goes over the cliff, it could lose its state status and revert back to being a territory, administered by the federal government.

Perhaps that is the intent. The tenth amendment is such an inconvenience to the dictatorial mindset.


14 posted on 10/10/2012 6:13:48 AM PDT by Jonty30 (What Islam and secularism have in common is that they are both death cults.)
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To: DeaconBenjamin; SmithL; NormsRevenge; nickcarraway
The other cities that Moody's has targeted for possible downgrades are Azusa, Berkeley, Colma, Downey, Glendale, Huntington Beach, Inglewood, Long Beach, Los Gatos, Martinez, Monterey, Oakland, Oceanside, Palmdale, Petaluma, Rancho Mirage, Redondo Beach, San Leandro, Santa Ana, Santa Barbara, Santa Clara, Santa Maria, Santa Rosa, Sunnyvale, Torrance and Woodland.

The residents all reliably vote Democrat.

15 posted on 10/10/2012 6:18:32 AM PDT by martin_fierro (< |:)~)
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To: American Constitutionalist

Warren Buffet halved his 16 billion exposure to municipal bond insurance just last month.


16 posted on 10/10/2012 6:21:34 AM PDT by MrB (The difference between a Humanist and a Satanist - the latter admits whom he's working for)
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To: DeaconBenjamin

The downgrade should start with Sacramento


17 posted on 10/10/2012 6:29:52 AM PDT by Uncle Chip
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To: martin_fierro

are there any live ones in the city of the dead?


18 posted on 10/10/2012 6:30:10 AM PDT by RitchieAprile (The 'great orator' Joe Biden? *That* Joe Biden??)
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To: Uncle Chip
The downgrade should start with Sacramento

Yep, start with the epicenter of the one-party government.

I live in Sacramento county and it is amazing how many empty office units there are.

Sorry to see Redondo Beach on the list -- one of my favorite California cities.

19 posted on 10/10/2012 7:11:32 AM PDT by The Citizen Soldier (Peace is that brief glorious moment in history when everyone stands around reloading.)
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To: DeaconBenjamin

Surprisingly COMPTON is not mentioned, and yet they are according to an article a couple of months ago in deep doo doo considering bankruptcy.


20 posted on 10/10/2012 7:25:20 AM PDT by rockinqsranch (Dems, Libs, Socialists, call 'em what you will, they ALL have fairies livin' in their trees.)
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To: DeaconBenjamin

The US should just sell California to Mexico for whatever the price the National Debt is at time of sale. Would anyone really miss anything about it?

The fruits-and-nuts and Hollywood types could stay and live out their socialist agenda, and maybe some of the illegals would leave the 47 other states. Win-win!!!

Only difficulty would be erecting an airtight fence along the OR-NV-AZ Border.


21 posted on 10/10/2012 7:26:51 AM PDT by ObozoMustGo2012
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To: American Constitutionalist
SHOCKED ! UNEXPECTED ! SURPRISING !

LOL

22 posted on 10/10/2012 10:06:13 AM PDT by GOPJ (You only establish a feel for the line by having crossed it. - - Freeper One Name)
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