Moody's: More California Municipal Bankruptcies Coming

Moody's says more California municipal bankruptcies are coming, as well as bond defaults.

Moody's floated the idea Friday of an across-the-board ratings adjustment for California cities, a move the warned "would have a terrible impact on taxpayers."

Indeed it would. If California's bond ratings are lowered, then the cost of borrowing money will increase for California cities and probably also for counties, school districts, and the state itself.

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