CHICAGO — Moody’s Investors Service this week said it views positively recent court rulings in Colorado and Minnesota dismissing litigation that challenged legislative cuts to retirees’ pension cost-of-living increases, and expects the rulings will spur other states to act.

“These decisions are credit-positive, indicating that those states can reduce benefit costs attributable to existing retirees, rather than only prospectively capping or reducing future retirees’ benefits,” Moody’s analysts wrote in their weekly credit outlook. The agency rates both states’ general obligation bonds Aa1.

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.