S&P Global Ratings cut the city of Hartford’s credit rating down four notches to B- on “potential payment interruption concerns,” after it had cut the grade of the city’s general-obligation municipal bonds by two notches to BB in July, relegating them to so-called junk status. Some large money managers, such as pension funds, are banned from purchasing credits that have earned a “junk” rating. The Connecticut city faces the prospect of defaulting on their debt obligations, with the city’s officials reportedly looking to hire bankruptcy lawyers.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
From:: Stock Market News