The recent threatened bankruptcy of Vallejo appears to be an isolated case that does not portend more such problems for California governments, according to a special comment Moody’s Investors Service released last week.

“While fiscal challenges are on the horizon for all California municipalities, they are not of the same depth, or even necessarily of the same cause, as those experienced by the state and the city of Vallejo,” according to the comment, authored by Eric Hoffmann. “Furthermore, based on our annual credit surveillance we believe that California cities and counties with Moody’s underlying (or 'unenhanced’) ratings are generally well positioned to manage these challenges.”

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