Bankrupt Cities

Moody's: Pennsylvania Cities Face Credit Downgrades

Municipalities not looking so fiscally sound


A report released Thursday by Moody's Investors Service suggests Pennsylvania municipalities may be heading toward a credit ratings downgrade.

The credit rating agency's new report says municipalities in the Keystone State face more downgrades than upgrades through early 2014 as a result of weak economic recovery, rising pension costs and other factors, such as declining state aid. Downgraded credit ratings result in increased borrowing costs.