1 million in general obligation municipal bonds, Standard & Poor's bumped up Worcester's bond rating
by two grades, from A- to A+ while Moody's Investors Service upgraded its rating from A1 to Aa3.
While we believe that both of these studies contribute to the accounting literature, we also believe that the use of only one bond rating
source represents a limitation in both studies because the use of only one bond rating
source masks the potential influence, if any, of split ratings on the results of these studies.
While the risk of a government default is very low, as reflected in its A2 bond rating
, the resiliency of private sector ratings, especially those higher than the government, to the stress associated with government financial difficulties must be thoroughly assessed.
I personally don't appreciate any department putting a gun to the council's head and saying, 'We're out of time and we're coming up against a bond rating
As a result, he added, that has changed how bond rating
agencies assess communities.
The Moody's firm reported to the board at Wednesday's meeting via telephone that the bond rating
was lowered from an AAA level to Baa1, affecting $67 million of outstanding debt.
Twenty-three Massachusetts cities and towns currently have the highest possible bond rating
- AAA - from at least one of the three major rating agencies, according to the Massachusetts Municipal Association.
At the same time, Fitch Ratings issued a less pessimistic outlook, affirming its previous bond rating
for the city.
Should the state's bond rating
get downgraded again, the interest rates on future bond issues will go through the roof.
Last week, Fitch Ratings had downgraded the future outlook of the city - a prediction of how the bond rating
might change - from ``stable'' to ``negative'' because of the uncertainty connected with secession.