Moody’s Cuts Credit Rating of D.C. Bonds
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WASHINGTON — For the second time this week, a Wall Street credit rating service on Wednesday lowered its evaluation of $1 billion of District of Columbia’s general obligation bonds--this time to junk bond status.
Moody’s Investors Service said the “continuing budget and cash pressures and a lack of a comprehensive long-term plan” to address the city’s massive financial problems prompted its action.
On Monday, Standard & Poor’s credit rating agency had dropped the city’s rating to its lowest category of investment grade bonds, just one rung above junk status.
Mayor Marion Barry shrugged off the weaker rating, saying Moody’s and Standard & Poor’s were “frightened” by the revised district budget deficit figure of $722 million.
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