Quote:
Moody’s Investors Service has placed all U.S. municipalities on negative outlook, indicating its expectations for the whole sector over the next 12 to 18 months.
It is the first time that the New York-based ratings agency issued a broad report on municipalities.
The dismal forecast, which was released yesterday, reflects the challenges that local governments face due to the collapse of the housing market, financial-market disruptions and a deep recession.
Municipalities will face reduced tax revenue as plummeting home values lead to lower property tax collections and as consumers cut back on spending, thus reducing sales tax revenue, the report stated.
http://www.investmentnews.com/apps/pbcs.dll/article?AID=/20090409/REG/904099981
Moody’s Investors Service has placed all U.S. municipalities on negative outlook, indicating its expectations for the whole sector over the next 12 to 18 months.
It is the first time that the New York-based ratings agency issued a broad report on municipalities.
The dismal forecast, which was released yesterday, reflects the challenges that local governments face due to the collapse of the housing market, financial-market disruptions and a deep recession.
Municipalities will face reduced tax revenue as plummeting home values lead to lower property tax collections and as consumers cut back on spending, thus reducing sales tax revenue, the report stated.
http://www.investmentnews.com/apps/pbcs.dll/article?AID=/20090409/REG/904099981