Moody’s Investors Service downgraded Groton, Conn.’s long-term general obligation rating to Aa3 from Aa2 and affirmed a negative outlook.
The move affects $41.5 million of outstanding rated debt secured by the city’s unlimited-tax pledge.
Moody’s cited Groton’s continued exposure to the risk of Thames Valley Communication Inc., the city’s wholly owned telecom corporation, for which it has about $28.6 million of GOs outstanding, including bond anticipation notes.
A combination of a "stronger-than-expected economy, higher Treasury rates, robust supply, and rich valuations resulting in choppy markets" have made the trading environment in H124 "quite difficult," according to Barclays.
Two rating agencies upgraded Los Angeles Unified School District's bond ahead of multi-billion dollar refunding.
The Basel III Endgame proposal to restructure capital holding levels comes under fire.
Friday price talk for the unrated tax-exempt paper was between 11% and 15%.
The board approved that step at its second quarter board meeting held this week.
The Inflation Reduction Act, affordable housing and clean energy were among the topics discussed at Baker Tilly's DevelUP conference in Chicago this week.
