PRESS DEMOCRAT STAFF AND WIRE REPORT
Santa Rosa and Petaluma are among dozens of California cities having their credit ratings reviewed for possible downgrades by one of the nation's top credit rating agencies.
Moody's Investors Services said there is mounting concern over municipal bankruptcies and bond defaults.
Moody's will scrutinize the ratings of various types of bonds in 30 California cities. The agency also announced that it already had downgraded eight municipal pension obligation bonds.
"California cities operate under more rigid revenue raising constraints than cities in many other parts of the country," Eric Hoffmann, who heads Moody's California local government ratings team, said in a statement. "Combined with steeply rising costs, these constraints mean that these cities will likely recover more slowly than their peers nationally, even if the state's economic recovery tracks the nation's."