Moody's sees gloom for MN state, city, school debt
One of the three big credit rating agencies has lowered its outlook for three kinds of government debt in Minnesota.
Moody's Investors Service says it sees financial risk ahead for state general obligation bonds as well as state-backed credit for school districts and local governments.
The New York-based agency cut its outlook from stable to negative.
Moody's kept its Aa1 credit rating for the state of Minnesota, the second-highest rating. The agency's rating for school district and local government debt remains one notch lower at Aa2.
The agency said Wednesday that local governments and school districts could be hurt by the state's budget problems, including the risk of a significant cut in state aid.
(Copyright 2010 by The Associated Press. All Rights Reserved.)
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