Much has been written about the plight of states in the current economic slowdown. The slow pace of economic recovery and weakness in the stock market continue to place enormous fiscal pressure on U.S. states. But how has the economic slowdown affected America's largest cities- Compared to states, which experienced weakened credit quality over the past 12-18 months, municipal ratings have tended to be more stable. While only one downgrade has occurred (Atlanta, from 'AA' to 'AA-'/Negative) since January 2002 among the largest cities, two cities, New York ('A') and Dallas ('AAA'), had their ratings affirmed but their outlooks changed to negative from stable. The stability of city ratings and outlooks compared to states is due primarily to: Most cities'...
Companies mentioned in this report are:
- San Jose
- Los Angeles
- New York City
- San Antonio
- District of Columbia
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues. SHOW LESS READ MORE >