July 29, 2011: Mass. Members Call on Moody's to Reconsider Announcement Regarding Municipal Debt

WASHINGTON – Congressman Barney Frank today released a letter, signed by every Member of the Massachusetts Congressional delegation, calling on the president of Moody’s Investors Service to strongly reconsider the company’s announcement that it would review the possible downgrade of U.S. municipalities and other institutions due to the indirect effects of the possible downgrade of US government bonds.
 
Those signing were Senator John Kerry, Senator Scott Brown, Congressman Barney Frank, Congressman Ed Markey, Congressman Michael Capuano,  Congressman James McGovern, Congressman Richard Neal, Congressman John Tierney, Congresswoman Niki Tsongas, Congressman Stephen Lynch, Congressman John Olver, and Congressman Bill Keating.
 
A number of Massachusetts communities were listed in the documents which accompanied the Moody’s announcement, including Newton, Brookline, Lexington, Concord, Wellesley, Wayland, Hingham, Dover and others.  In all, Moody’s lists 162 local governments in 31 states.
 
In their joint letter, the Members write that there is “no apparent basis” for the announcement by the credit-rating agency, and they call on Moody’s to immediately give the municipalities an opportunity to show that they can meet their obligations and thus maintain their Aaa rating.
 
The letter from the Massachusetts delegation to Moody’s can be found here .