California RDA Bond Downgrade Angers Officials

Moody’s Investors Service’s recent downgrade to junk of California redevelopment bonds has triggered complaints from state officials, but little evident stir in the market. “We believe Moody’s action was wholly unjustified,” said Tom Dresslar, a spokesman for Treasurer Bill Lockyer. “The law makes it very clear that bondholders have the same priority that they did before the dissolution.” Moody’s Thursday downgraded $11.6 billion of California tax-allocation bonds rated Baa3 or higher to Ba1. The move followed Moody’s one-notch downgrade in January.

Bond Buyer

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