Moody's sees pension-fees hike a positive for California gov'ts

April 19 Fri Apr 19, 2013 10:06am EDT

April 19 (Reuters) - Moody's Investors Service said a hike in pension fees by the California Public Employees Retirement System will pressure other spending by local governments but will be a long-term credit positive for the state's bond issuers.

"Despite the near-term pressure, in the long run the increased contributions are likely to benefit both local governments and the State of California," the Wall Street credit-ratings group said in a commentary released on Friday.

California is rated A1, with a stable outlook, Moody's said.

A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

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