March 29 Moody's Investors Service on Friday cut
California's Solano County pension obligation bonds (POBs) to A1
The rating agency also affirmed the county's Aa2 issuer and
A1 ratings on the county's outstanding certificates of
The downgrade "reflects generally our changed view of the
pledge supporting POBs compared with general obligation bonds.
We believe this pledge is relatively less secure than our prior
estimates, both in terms of probability of default and likely
losses in the event of default," Moody's said in a statement.
The outlook is stable reflecting "the likelihood that the
county will maintain its current financial position, which when
combined with the improving economic indicators, should maintain
the county's current credit quality," the agency said.