Harrisburg’s debt woes are exacerbated by the political impasse between Mayor Linda Thompson and the City Council, which could hinder its ability to utilize the capital market in the future, according to a Moody’s Investors Service analysis of Pennsylvania’s capital city.

Harrisburg is set to miss a debt-service payment of $3.3 million due Sept. 15 to bondholders of Series 1997D and Series 1997F capital appreciation bonds. Ambac Assurance Corp., insurer of the GO bonds, will meet payments to investors. The city’s next debt-service payment on the 1997 GO bonds is $5.32 million due March 15, according to the official statement of the Series 1997 bonds.

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