Daily News: February 4, 2013

Moody’s Downgrades Record Public Finance Debt


According to Bond Buyer, Moody’s noted in a report it has downgraded a record $311 billion of public finance debt in 2012, surpassing the previous 2009 record of $256 billion, a negative trend that the rating agency said is likely to continue this year.

The 2012 downgrades, 824 in total, were a 60% increase over the $194 billion of debt in 518 downgrades the previous year, Moody’s said.

For 2013, we expect downgrades to continue outpacing upgrades in most public finance sub-sectors, albeit at a reduced pace as the economic recovery continues and the housing sector begins to strengthen, said Moody’s assistant vice president Eileen Hawes, lead author of the report.

To read the Bond Buyer story click here.