ATLANTA - The Louisville Arena Authority in Kentucky late last week decided that the second financing for a new arena in the city would not move forward with the closing of bond deal because of the negative rating action Moody's Investors Service took against Assured Guaranty Ltd., the insurer of the debt.

Moody's put the rating of the insurer on watch for possible downgrade, causing officials working on both a $360 million deal for the arena and a separate $78.7 million transaction for the project to reevaluate moving forward with the closing.

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