SAN FRANCISCO – Moody’s Investors Service cut Fresno, Calif.’s sewer revenue bonds one notch to A1 from Aa3 because of the city’s financial problems.

The city’s poor fiscal state has increased the chance it could borrow money from the sewer utility, and possibly seek bankruptcy protection, which could cause debt service payments for the bonds to accelerate, according to Moody’s ratings report issued Monday.

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