SAN FRANCISCO, July 29 (Reuters) - Moody’s Investors Service placed the municipal debt ratings of 462 state and local governments on review on Friday, after the agency recently updated its rating methodology.
Approximately 12 percent of 4,000 state and local municipal governments rated by Moody’s may see a change to their ratings within the next 90 days, the agency reported.
Of the more notable issuers under review for upgrade are San Francisco and Los Angeles. Indianapolis and Philadelphia are under review for possible downgrades. Thirteen state government will be reviewed.
The new methodology was in part based on how municipal debt obligations fared in a handful of recent bankruptcies.
Moody’s expects most rating changes will be one-notch movements, and some ratings could be confirmed at their current level. (Reporting by Robin Respaut; Editing by Jonathan Oatis)