Moody's Investors Service said it has placed the ratings of approximately $668.8 million of city of Miami, Fla., obligations on review for possible downgrade.
This rating action follows the filing of a material events disclosure by the city regarding a notification from the Securities and Exchange Commission's (the "SEC") enforcement staff that it intends to recommend that the SEC file civil fraud charges against the city in connection with certain bond offerings.
The city has until August 6 to make a response submission to the local Miami division office of the SEC.
During the review, Moody's will determine whether the issues identified by the SEC are known to it and have been incorporated into its analysis of the city's finances.
Moody's will also assess the potential monetary penalties or other consequences of the SEC's final decision, and the impact these could have on the city's finances, debt position or market access.
The following are now under review for downgrade: A2 rating on $25.4 million in GO unlimited tax bonds, A3 rating on $226.2 million in limited ad valorem bonds, A3 rating on $277.3 million in non-ad valorem obligations, and A2 rating on $139.9 million in special tax obligations.