New York, December 07, 2011 -- Moody's Investors Service has completed its assessments of the rating
outlooks of five Aaa-rated states and 161 Aaa local governments
previously identified as indirectly linked to the U.S. government,
affecting a combined $69 billion of debt. As a result of
these assessments, Moody's has revised the outlook to stable
from negative for two states and 119 local governments while the outlook
remains negative for three states and 36 local governments.
In addition, six local governments continue to carry negative outlooks
for reasons unrelated to the U.S. government. While
Moody's does not view these issuers as indirectly linked to the
U.S. government, their ratings are under review based
on other credit factors. Also, one of the local governments
originally placed on negative outlook in August was previously downgraded
to Aa1 for reasons unrelated to the U.S. government.
Moody's assigned negative outlooks to these issuers on August 4,
following the August 2 confirmation of the U.S. government's
Aaa sovereign rating and assignment of a negative outlook. That
sovereign rating action concluded a review for possible downgrade that
Moody's had initiated on July 13.
RATINGS RATIONALE
"Today's actions are based on an expanded evaluation of the
exposure each municipality has to the U.S. government,
including economic sensitivity to federal spending reductions, dependence
on federal transfers and exposure to capital markets disruptions"
said Naomi Richman, Moody's Managing Director.
Moody's analysis includes specific metrics such as federal procurement
activity, federal employment and healthcare employment as indicators
of economic sensitivity. Medicaid expenditures for states and public
hospital expenditures for local governments as indicators of direct exposure
to federal spending are also considered along with the presence of short-term
or puttable debt as an indicator of exposure to capital markets disruptions.
"Issuers with outlooks that remain negative are viewed as having
greater exposure to potential cuts in federal employment and federal spending,"
said Ms. Richman.
The outlooks of South Carolina and Tennessee were revised to stable to
reflect their relatively lower levels of financial and economic exposure
to the U.S. The outlooks of Maryland, New Mexico and
Virginia remain negative due to high concentrations of federal government
employment and federal procurement.
"Maryland, New Mexico and Virginia have economies that are
highly dependent on federal employment and federal spending,"
said Nick Samuels, Vice President on Moody's states rating
team. "As a result, they are exposed to the risks posed
by federal downsizing and spending cuts."
If the U.S. Aaa rating were to be placed under review or
downgraded the ratings of municipal issuers with a negative outlook tied
to the U.S. government would follow suit.
Moody's notes, however, that even with a return to a
stable outlook for the U.S. sovereign rating, the
ratings of some of these states and local governments may remain pressured
if the measures designed to reduce the federal deficit significantly cut
government spending or transfers in areas in which the municipality has
concentrations.
Certain municipal issuers that had negative outlooks prior to the August
rating actions will retain their negative outlooks for reasons unrelated
to the U.S. government rating pressure. Additional
information on those issuers can be found in the individual research on
those entities at www.moodys.com. In addition,
the ratings of two higher education and not-for-profit organizations
and12 housing programs with indirect exposure to the U.S.
government remain on negative outlook.
The list of affected issuers can be found below. A complete list
of affected securities and a special comment with additional analysis,
"Most Aaa-Rated State and Local Governments Revert to Stable
Outlooks, Despite Negative Pressure on U.S. Government
Rating," is available at www.moodys.com/USRatingActions.
The principal methodologies used in these rating actions were General
Obligation Bonds Issued by U.S. Local Governments published
in October 2009 and Moody's State Rating Methodology published in
November 2004. Please see the Credit Policy page on www.moodys.com
for a copy of these methodologies.
LOCAL GOVERNMENTS WITH OUTLOOKS REVISED TO STABLE FROM NEGATIVE:
ALABAMA:
MOUNTAIN BROOK (CITY OF)
VESTAVIA HILLS (CITY OF)
CALIFORNIA:
MANHATTAN BEACH (CITY OF)
METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA
COLORADO:
JEFFERSON (COUNTY OF)
CONNECTICUT:
DARIEN (TOWN OF)
EASTON (TOWN OF)
GREENWICH (TOWN OF)
MADISON (TOWN OF)
NEW CANAAN (TOWN OF)
NORWALK (CITY OF)
RIDGEFIELD (TOWN OF)
WALLINGFORD (TOWN OF)
WESTON (TOWN OF)
WESTPORT (TOWN OF)
WILTON (TOWN OF)
WOODBRIDGE (TOWN OF) CT
DELAWARE:
NEW CASTLE (COUNTY OF)
FLORIDA:
BROWARD (COUNTY OF)
HILLSBOROUGH (COUNTY OF)
PALM BEACH (COUNTY OF)
PALM BEACH (COUNTY OF) WATER AND SEWER ENTERPRISE
GEORGIA:
COBB (COUNTY OF)
COBB (COUNTY OF) WATER AND SEWER ENTERPRISE
FORSYTH (COUNTY OF)
GWINNETT (COUNTY OF)
GWINNETT COUNTY SCHOOL DISTRICT
GWINNETT COUNTY WATER & SEWERAGE AUTHORITY
ILLINOIS:
DU PAGE COUNTY FOREST PRESERVE DISTRICT
WILMETTE (VILLAGE OF)
KANSAS:
JOHNSON & MIAMI COUNTY UNIFIED SCHOOL DISTRICT 229 (BLUE VALLEY)
JOHNSON (COUNTY OF)
JOHNSON COUNTY COMMUNITY COLLEGE
JOHNSON COUNTY UNIFIED SCHOOL DISTRICT 512 (SHAWNEE MISSION)
JOHNSON COUNTY WATER DISTRICT 1
LEAWOOD (CITY OF)
LENEXA (CITY OF)
OVERLAND PARK (CITY OF)
PRAIRIE VILLAGE (CITY OF)
KENTUCKY:
LOUISVILLE WATER WORKS BOARD
MASSACHUSETTS:
ACTON (TOWN OF)
BELMONT (TOWN OF)
BROOKLINE (TOWN OF)
CONCORD (TOWN OF)
CONCORD-CARLISLE REGIONAL SCHOOL DISTRICT
DOVER (TOWN OF)
HINGHAM (TOWN OF)
LEXINGTON (TOWN OF)
LINCOLN-SUDBURY REGIONAL SCHOOL DISTRICT
NEWTON (CITY OF)
WAYLAND (TOWN OF)
WELLESLEY (TOWN OF)
WESTON (TOWN OF)
MICHIGAN:
BIRMINGHAM SCHOOL DISTRICT
OAKLAND SCHOOL DISTRICT
MISSOURI:
LEE'S SUMMIT (CITY OF)
MINNESOTA:
DAKOTA (COUNTY OF)
EDINA INDEPENDENT SCHOOL DISTRICT 273
HENNEPIN (COUNTY OF) -- GENERAL OBLIGATION AND SALES TAX REVENUE
MAPLE GROVE (CITY OF)
MINNEAPOLIS (CITY OF)
MINNETONKA INDEPENDENT SCHOOL DISTRICT 276
RAMSEY (COUNTY OF)
ST. LOUIS PARK (CITY OF)
WASHINGTON (COUNTY OF)
WAYZATA (CITY OF)
WAYZATA INDEPENDENT SCHOOL DISTRICT 284
NEBRASKA:
OMAHA (CITY OF)
NEW JERSEY:
BERGEN (COUNTY OF)
MONMOUTH (COUNTY OF)
MORRIS (COUNTY OF)
NORTH CAROLINA:
DURHAM (COUNTY OF)
GREENSBORO (CITY OF)
GUILFORD (COUNTY OF)
MECKLENBURG (COUNTY OF)
NEW HANOVER (COUNTY OF)
WAKE (COUNTY OF)
WINSTON-SALEM (CITY OF)
OHIO:
FRANKLIN (COUNTY OF)
WASHINGTON (TOWNSHIP OF)
OREGON:
PORTLAND (CITY OF)
PENNSYLVANIA:
BUCKS (COUNTY OF)
CHESTER (COUNTY OF)
DOWNINGTOWN AREA SCHOOL DISTRICT
GREAT VALLEY SCHOOL DISTRICT
LOWER GWYNEDD (TOWNSHIP OF)
LOWER MERION (TOWNSHIP OF)
MONTGOMERY (COUNTY OF)
TREDYFFRIN (TOWNSHIP OF)
TREDYFFRIN-EASTTOWN SCHOOL DISTRICT
UPPER MERION (TOWNSHIP OF)
WEST CHESTER AREA SCHOOL DISTRICT
WISSAHICKON SCHOOL DISTRICT
TENNESSEE:
FRANKLIN (CITY OF)
HAMILTON (COUNTY OF)
MEMPHIS (CITY OF) WATER ENTERPRISE
WILLIAMSON (COUNTY OF)
TEXAS:
HIGHLAND PARK INDEPENDENT SCHOOL DISTRICT
RICHARDSON (CITY OF)
TRAVIS (COUNTY OF)
UTAH:
CANYONS SCHOOL DISTRICT
JORDAN SCHOOL DISTRICT
SALT LAKE (COUNTY OF)
SALT LAKE CITY (CITY OF)
SALT LAKE CITY SCHOOL DISTRICT
VIRGINIA:
ALBEMARLE (COUNTY OF)
CHARLOTTESVILLE (CITY OF)
CHESTERFIELD (COUNTY OF)
HANOVER (COUNTY OF)
HENRICO (COUNTY OF)
WASHINGTON:
BELLEVUE (CITY OF)
KING (COUNTY OF)
KING COUNTY SCHOOL DISTRICT 1 (SEATTLE)
KING COUNTY SCHOOL DISTRICT 400 (MERCER ISLAND)
KING COUNTY SCHOOL DISTRICT 405 (BELLEVUE)
KING COUNTY SCHOOL DISTRICT 411 (ISSAQUAH)
KING COUNTY SCHOOL DISTRICT 414 (LAKE WASHINGTON)
SEATTLE (CITY OF)
WISCONSIN:
MEQUON-THIENSVILLE SCHOOL DISTRICT
LOCAL GOVERNMENTS WITH OUTLOOKS THAT REMAIN NEGATIVE DUE TO LINKAGE WITH
U.S. GOVERNMENT:
ALABAMA:
HUNTSVILLE (CITY OF)
COLORADO:
DENVER (CITY & COUNTY OF)
EL PASO COUNTY SCHOOL DISTRICT 12 (CHEYENNE MOUNTAIN)
INDIANA:
HAMILTON (COUNTY OF)
MARYLAND:
BALTIMORE (COUNTY OF)
BOWIE (CITY OF)
HARFORD (COUNTY OF)
HOWARD (COUNTY OF)
MONTGOMERY (COUNTY OF)
PRINCE GEORGE'S (COUNTY OF)
ROCKVILLE (CITY OF)
WASHINGTON SUBURBAN SANITARY DISTRICT
MISSOURI:
CHESTERFIELD (CITY OF)
ST. LOUIS (COUNTY OF)
NEW MEXICO:
ALBUQUERQUE METROPOLITAN ARROYO FLOOD CONTROL AUTHORITY
BERNALILLO (COUNTY OF)
OKLAHOMA:
OKLAHOMA (COUNTY OF)
OKLAHOMA CITY (CITY OF)
PENNSYLVANIA:
LOWER MERION SCHOOL DISTRICT (MONTGOMERY CO.)
TEXAS:
ALAMO COMMUNITY COLLEGE DISTRICT
BEXAR (COUNTY OF)
DALLAS (COUNTY OF)
SAN ANTONIO (CITY OF)
SAN ANTONIO RIVER AUTHORITY
TARRANT (COUNTY OF)
TARRANT COUNTY HOSPITAL DISTRICT
VIRGINIA:
ALEXANDRIA (CITY OF)
ARLINGTON (COUNTY OF)
FAIRFAX (CITY OF)
FAIRFAX (COUNTY OF)
FAIRFAX COUNTY WATER AUTHORITY
HERNDON (TOWN OF)
LOUDOUN (COUNTY OF)
PRINCE WILLIAM (COUNTY OF)
VIENNA (TOWN OF)
VIRGINIA BEACH (CITY OF)
LOCAL GOVERNMENTS WITH OUTLOOKS THAT REMAIN NEGATIVE DUE TO FACTORS OTHER
THAN LINKAGE WITH U.S. GOVERNMENT:
CONNECTICUT:
FAIRFIELD (TOWN OF)
OHIO:
LAKOTA LOCAL SCHOOL DISTRICT (BUTLER COUNTY)
NEW JERSEY:
UNION (COUNTY OF)
NEW YORK:
WESTCHESTER (COUNTY OF)
TEXAS:
GARLAND INDEPENDENT SCHOOL DISTRICT
HARRIS (COUNTY OF)
LOCAL GOVERNMENT DOWNGRADED TO Aa1 SUBSEQUENT TO AUGUST 4, 2011
DUE TO FACTORS OTHER THAN LINKAGE WITH U.S. GOVERNMENT:
MASSACHUSETTS:
BEDFORD (TOWN OF)
REGULATORY DISCLOSURES
The Global Scale Credit Ratings on this press release that are issued
by one of Moody's affiliates outside the EU are considered EU Qualified
by Extension and therefore available for regulatory use in the EU.
Further information on the EU endorsement status and on the Moody's
office that has issued a particular Credit Rating is available on www.moodys.com.
For ratings issued on a program, series or category/class of debt,
this announcement provides relevant regulatory disclosures in relation
to each rating of a subsequently issued bond or note of the same series
or category/class of debt or pursuant to a program for which the ratings
are derived exclusively from existing ratings in accordance with Moody's
rating practices. For ratings issued on a support provider,
this announcement provides relevant regulatory disclosures in relation
to the rating action on the support provider and in relation to each particular
rating action for securities that derive their credit ratings from the
support provider's credit rating. For provisional ratings,
this announcement provides relevant regulatory disclosures in relation
to the provisional rating assigned, and in relation to a definitive
rating that may be assigned subsequent to the final issuance of the debt,
in each case where the transaction structure and terms have not changed
prior to the assignment of the definitive rating in a manner that would
have affected the rating. For further information please see the
ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.
Moody's considers the quality of information available on the rated
entity, obligation or credit satisfactory for the purposes of issuing
a rating.
Moody's adopts all necessary measures so that the information it
uses in assigning a rating is of sufficient quality and from sources Moody's
considers to be reliable including, when appropriate, independent
third-party sources. However, Moody's is not
an auditor and cannot in every instance independently verify or validate
information received in the rating process.
Please see Moody's Rating Symbols and Definitions on the Rating
Process page on www.moodys.com for further information on
the meaning of each rating category and the definition of default and
recovery.
Please see ratings tab on the issuer/entity page on www.moodys.com
for the last rating action and the rating history. The date on
which some ratings were first released goes back to a time before Moody's
ratings were fully digitized and accurate data may not be available.
Consequently, Moody's provides a date that it believes is
the most reliable and accurate based on the information that is available
to it. Please see the ratings disclosure page on our website www.moodys.com
for further information.
Please see www.moodys.com for any updates on changes to
the lead rating analyst and to the Moody's legal entity that has
issued the rating.
In addition to the information provided below please find on the ratings
tab of the issuer page at www.moodys.com, for each
of the ratings covered, Moody's disclosures on the lead rating
analyst and the Moody's legal entity that has issued each of the
ratings.
Naomi Richman
MD - Public Finance
Structured Finance Group
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
Gail Sussman
MD - US Public Finance
Structured Finance Group
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
Releasing Office:
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
Moody's: Outlook to Stable for Most Aaa-Rated Muni Credits Linked to U.S. Government
