Moody's Investors Service said that many California cities will remain fiscally challenged over the next few years due to limits on raising revenues and demands for pensions and other spending, Reuters reported yesterday. The agency said that it downgraded the ratings on 27 cities' obligations and upgraded the general obligation ratings of two cities—San Francisco and Los Angeles—after reviewing all of the 95 California cities it assesses. The review was inspired by the bankruptcy filings of Stockton and San Bernardino, California, to understand the risk of future bankruptcy filings and the cities' current budget conditions, Moody's said.
