Moody’s Withdraws Lackawanna County’s Bond Rating

Lackawanna County Courthouse, Scranton, Pennsy...

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More than six months after Lackawanna County asked Moody’s Investors Service to withdraw its bond rating, the rating agency has complied.

It is what happened in the interim that the county hoped to avoid.

In the past 12 weeks, the county has borrowed $21 million to clear its books of unfunded debt, including repayment of last year’s tax anticipation loan; increased property taxes 38 percent to balance its 2012 budget; and completed the overdue audit of its 2010 finances.

But all of that financial housekeeping came too late for Moody’s, which quietly withdrew its rating on the county’s $202.7 million in outstanding general obligation bonds two weeks ago after downgrading the debt to the equivalent of junk status back in September.

Read more: http://thetimes-tribune.com/news/moody-s-withdraws-lackawanna-county-s-bond-rating-1.1270446#ixzz1m6HXW5GI

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