California Likely to Issue More IOUs ; Moody’s

California’s ongoing budget woes makes it more likely that the state will issue registered warrants, but that should not negatively impact the local government’s credit quality, Moody’s (MCO) said Friday. “The possibility of a temporary interruption in cash flow to local government issuers from the state is not likely to create cash flow problems for them despite the fact that warrants could weaken cash flow at a time when most are already struggling with weak or declining revenue,” Moody’s said in a report titled “California’s IOUs Unlikely to Harm Local Government Credit.” – iMarketNews

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