Moody's changes 22 municipal credits linked to U.S. gov't

Wed Feb 6, 2013 10:07am EST

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NEW YORK, Feb 6 (Reuters) - Moody's Investors Service has
changed to negative from stable its credit outlook for the state
of Missouri, plus eight cities and counties and two state
housing finance agency programs, after an analysis of which
Aaa-rated issuers have indirect links to the U.S. federal
government.
    The rating agency, meanwhile, changed the outlook to stable
from negative on another 11 issuers, mostly housing finance
agency loan programs (HFA), after it determined they no longer
have a significant link to the federal government, Moody's said
late on Tuesday.
    Moody's, which has rated the U.S. government Aaa with a
negative outlook since August 2011, runs a yearly screening of
the indirect links between state and local governments and the
U.S. federal government.
    "Most of our non-US sub-sovereign issuers tend to be highly
exposed to the same macroeconomic and financial sector pressures
which affect the central government," Moody's said in its
report. It added that, in a small portion of cases,
sub-sovereigns are rated higher than their sovereign.
    The following issuers outlooks were changed to negative:
Ames, Iowa; South Carolina's Charleston County; Charleston
County Park & Recreation District of South Carolina; Easton,
Connecticut; Iowa's Linn County; Indianapolis, Indiana;
Missouri; Minnesota's Olmsted County; Rochester, Minnesota;
and Cedar Rapids, Iowa, which already had a negative outlook but
is now indirectly linked to the U.S. rating.
    In addition, the two state housing finance agency programs
revised to negative are the Idaho H&FA-single family mortgage
senior bonds series 2000B and 2000E.
    State and local rating outlooks that were changed to stable
are the City and County of Denver, Colorado; Montgomery County,
Pennsylvania's Lower Merion School District.
    The HFA single family whole loan and mortgage-backed
security program rating outlooks revised to stable are:
    Idaho H&FA - single family mortgage senior bonds, series
1999F and series 1999D; Utah HC - single family mortgage senior
bonds 1998G Class I(sf) and Utah - single family mortgage senior
bonds (NIBP); Alabama Housing Finance Authority: taxable
mortgage revenue bond (collateralized revenue bond program);
Alabama Housing Finance Authority: collateralized single family
mortgage revenue bonds; Indiana Housing Finance Authority:
single family mortgage revenue bonds; Louisiana Housing Finance
Agency: homeownership program; Oklahoma Housing Finance Agency:
homeownership program.
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