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Moody's downgrades City of Newark GOULT and GOLT
May 15, 2015 / 10:27 PM / 3 years ago

Moody's downgrades City of Newark GOULT and GOLT

May 15 (Reuters) - Moody’s downgraded City of Newark’s general obligation unlimited tax (GOULT) rating to ‘Baa3’ from ‘Baa1’ and general obligation limited tax (GOLT) rating to ‘Ba1’ from ‘Baa2’, reflecting the city’s further weakened financial position since last year.

The downgrade also reflects Newark’s reliance on market access for cash flow, history of aggressively structured budgets adopted late in the year, and uncertainty around continued financial support from New Jersey, Moody’s said.

The ratings agency’s outlook on Newark is negative, which reflects uncertainties about the timely adoption of a balanced fiscal 2015 budget. (Reporting by Kanika Sikka in Bengaluru)

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