Moody's says "speculative grade" local gov't credits to grow
Oct 24 (Reuters) - Moody's Investors Service said on Wednesday that America's generally tepid economic recovery will knock the credit ratings of more local governments below investment grade.
"Moody's emphasizes that speculative-grade issuers - those with non-investment grade ratings of Ba1 and below - will continue to make up a small portion of the close to 8,000 cities, counties and school districts that it rates," Moody's said.
Moody's currently has speculative ratings on 30 issuers with about $10 billion in debt outstanding. They were 25 last year.
"During the past year, Moody's downgraded 10 issuers into speculative grade while it also upgraded four local government issuers into investment grade," the Wall Street credit agency said in a news release.