March 29 Moody's Investors Service on Friday
said it cut California's Sacramento County pension obligation
bonds (POBs) to Baa1 from A3.
The rating agency also affirmed the county's long-term
ratings which include its A2 issuer and Baa1 certificates of
The rating actions affect about $1.2 billion of debt.
"The downgrade of the POBs incorporates our changed view of
the pledge supporting POBs versus 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," the rating agency said in a
Moody's said the outlook is stable, reflecting "as
predicated on our expectation that the economy will continue to
slowly improve while management controls costs to maintain
general fund cash and reserve levels no worse than current