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March 29 (Reuters) - Moody's Investors Service on Friday cut California's Solano County pension obligation bonds (POBs) to A1 from Aa3.
The rating agency also affirmed the county's Aa2 issuer and A1 ratings on the county's outstanding certificates of participation.
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.