Citing a “deteriorating financial position” due in part to a severe downturn in the local real estate market, Moody’s Investors Service Monday dropped Stockton’s issuer rating to A2 from A1.

The city of 290,000, located about 80 miles east of San Francisco and 50 miles south of Sacramento, experienced strong growth in the recent real estate boom but is now among those most affected by the current downturn, according to Moody’s.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.