September 3, 2010
Re: MOODY'S DOWNGRADE OF WESTFIELD CAUSES BUDGET CAP CONCERN
The recent credit rating downgrade of Westfield by Moody's Investor Service has been reported by Bloomberg to be based largely on the impact of the State's imposed 2% budget cap.
The League urges caution in reacting to this decision until more information is available. Although Moody’s mentions the cap as a negative, the downgrade also appears to be based on other factors unrelated to the cap.
It is unclear how much of a factor the cap was in its decision and how much of a factor the cap will be by Moody’s and the other rating agencies in future rating reviews. More rating reviews will follow in the next two months. These will give a better read on this subject.
We will continue to monitor the situation and keep you posted on upcoming further developments.
Very truly yours,
William G. Dressel, Jr.