Moody's changes 22 municipal credits linked to U.S. gov't
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.
Trending On Reuters
We are living longer but not creating financial plans to keep pace. Advisers give tips on how to make sure you don’t outlive your money. Video