Stockton, Calif.'s recently approved sales tax increase is a credit positive for the city because the additional revenue increases the likelihood its reorganization will be approved by the bankruptcy court, according to Moody's Investors Service.

"It is also a credit positive for municipal bond insurers, National Public Financial Guarantee Corp., Assured Guaranty Municipal Corp. and Ambac, who could have faced increased pressure to renegotiate less favorable terms with the city," vice president and senior credit officer Gregory Lipitz said in a report released Friday.

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