Moody's Investors Service said yesterday that potential bankruptcy losses on $3.14 billion of sewer and other debt issued by Alabama's Jefferson County may be greater than current ratings signal, Reuters reported yesterday. While confirming a Caa3 rating on the sewer debt and $200 million of county general obligation debt, the Wall Street ratings group assigned a negative outlook to the bankrupt local government's debt. "The negative outlook reflects the possibility that ultimate losses to bondholders once bankruptcy proceedings conclude could exceed the levels implied by the current ratings," Moody's said.
