Southeast

The Virginia state legislature is weighing financial gains for local governments against billions of dollars in lost tax revenue and growing homeowner opposition to data centers.

The rating agency cited the city's sharply diminished liquidity and reserves.

The state sold $348.7 million in general obligation bonds Thursday in a competitive deal.

The rating agency cited the prospect of lowered debt service coverage ratios in the next three years.

Moody's said the $350 million of Series 2007 Class I bonds are on review for further downgrade.

Litigants say $400 million in planned Port of South Louisiana bonds were not properly advertised. It's part of a wider challenge to industrial development plans.

Moody's Ratings cited a substantial fall in unrestricted liquidity for the two-notch downgrade. Moody's also placed the rating on review for another downgrade.

The legislature passed bills to cut personal income tax rates over time and limit increases on homestead property tax payments to the rate of inflation.

S&P cited repeated draws on reserves for the lowered outlook.

The city is in danger of defaulting on bonds in the next fiscal year, according to Local Government Commission officials who say they will intervene if needed.