Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Muni Downgrade-to-Upgrade Ratio Highest in 3 Years, Moody’s Says

Nov. 1 (Bloomberg) -- Downgrades of municipal debt outpaced upgrades in the third quarter by the largest margin since the 2008 financial crisis, led by state and local governments that have contended with declining revenue, according to a report from Moody’s Investors Service.

About five ratings were cut for every one upgraded, with 163 downgrades in the quarter to 31 upgrades, according to the statement. The study shows rating revisions for states, local governments, infrastructure, housing, not-for-profit health care, higher education and other agencies.

Moody’s said it expects “downgrades to continue dominating state rating actions over the near term.”

More than 100 local governments and school districts had their ratings dropped as the struggling housing market reduced property-tax revenue, the study said. That included 11 issuers that fell three or more levels, so-called superdowngrades, the statement said. School districts accounted for 41 percent of the downgrades.

The 163 total downgrades exceeded the 127 from the second quarter. The most rating cuts came in the fourth quarter of 2010, when 197 were downgraded.

The 18-month recession, the longest since the Great Depression, began in December 2007 and decreased government revenue.

The slide in U.S. state revenue slowed in fiscal 2010 as the economy stabilized, according to Census Bureau data. State tax collections in fiscal 2010 declined $14.3 billion, or 2 percent, to $704.6 billion. In 2009, they tumbled $65 billion, or 8.4 percent.

To contact the reporter on this story: Brian Chappatta in New York at

To contact the editor responsible for this story: Mark Tannenbaum at

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.