Moody’s Investors Service has placed the ratings of 40 local government issuers under review with direction uncertain, affecting approximately $354 million of outstanding debt.
The credit ratings agency said the review, announced Friday, is prompted by the lack of sufficient, current financial information.
If the information is not received over the coming weeks, Moody’s said it will take appropriate rating action, which could include the withdrawal or lowering of the ratings.
The actions are evidence of greater impatience with late or poor disclosure, said Alan Schankel, managing director at Janney Capital Markets.
“Although we’ve seen these types of actions in one-off situations, this packaging of 40 issuers in one announcement signals heightened attention to disclosure,” he said in a market note on Tuesday.
Some of the issuers placed on review include the city of York, Pa., Anson Water District in Maine, Village of Canton, N.Y., Colbert County, Ala., and Port of Kalama, Wash.