CHICAGO - Peoria, Ill.-based Caterpillar Inc.'s recent decision to trim 20% of its global workforce of 110,000 will put added strain and pressure on the budgets and credits of its hometown city and other nearby governmental units, Moody's Investors Service writes in a new commentary.

The heavy equipment and machinery maker's late January announcement of 22,000 jobs cuts following a disappointing fourth quarter and lowered 2009 outlook was highlighted by President Obama, who visited a Caterpillar plant in East Peoria earlier this month to promote passage of his economic stimulus package.

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