Moody's Could Downgrade Danville's Credit Rating

The Town of Danville is one of the 30 California municipalities that could see its credit rating downgraded by one of the nation's leading credit rating agencies, the Associated Press reported Tuesday.

The agency is Moody's Investors Service, which plans to scrutinize various types of bonds in the cities. The agency rates 95 California cities.

A downgrade for Danville would increase borrowing costs and could make it more difficult to borrow for infrastructure projects.

In a statement, Eric Hoffmann, who heads Moody's California local government ratings team, said:

"California cities operate under more rigid revenue raising constraints than cities in many other parts of the country. Combined with steeply rising costs, these constraints mean that these cities will likely recover more slowly than their peers nationally, even if the state's economic recovery tracks the nation's."

The other cities that Moody's has targeted for possible downgrades are Azusa, Berkeley, Colma, Downey, Fresno.Glendale, Huntington Beach, Inglewood, Long Beach, Los Gatos, Martinez, Monterey, Oakland, Oceanside, Palmdale, Petaluma, Rancho Mirage, Redondo Beach, Sacramento, San Leandro, Santa Ana, Santa Barbara, Santa Clara, Santa Maria, Santa Moncia, Santa Rosa, Sunnyvale, Torrance and Woodland.

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