NEW YORK, July 23 Moody's Investor Service said
on Monday it cut to A3 from A2 the long-term rating for the City
of Fresno in California because of the city's exceeedingly weak
The Wall Street rating agency also downgraded the city's
pension obligation bonds to Baa1 from A3 and lease revenue bonds
to Baa2 from Baa1.
"The downgrade reflects the city's exceedingly weak
financial position and uncertainties imbedded in the city's
adopted budget, most notably $12 million of budget gap closing
solutions," Moodys said in a statement.
"These solutions continue to rely on labor concessions,
which have proven to be difficult to achieve and will likely
lead to internal deficit borrowing, thereby pushing the
available general fund balance further into negative position"
The move affects around $462 million of debt.