Municipalities downgraded in US

In an unprecedented decision, for the first time ever, Moody’s Investors Service assigned a blanket negative outlook to the creditworthiness of all municipalities in the United States and suggested that the ratings of many of them would be downgraded in the coming months. At a time when the economic crisis (and falling property values) has already squeezed property tax revenues, ratings downgrade will only add to the problems faced by local governments, making it more expensive for them to borrow money to finance their operations.