Moody’s Investors Service Monday downgraded $4.9 million of Compton, Calif., sewer revenue bonds five notches to Ba1 from A2 due to the city’s severe cash crisis.

“The downgrade is based primarily on the city’s severe liquidity crisis, the risk this raises that the city could seek bankruptcy protection, and the potential implications of such a development on timely debt service payments,” Moody’ said in report.

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