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N.J. governments face risk on ‘backup’ debt, Moody’s says

the Ridgewood blog theridgewoodblog.net 8

N.J. governments face risk on ‘backup’ debt, Moody’s says

New Jersey local governments may be exposed to more credit risk as they guarantee the debt of other entities, a strategy that led to default in Harrisburg, Pennsylvania, Moody’s Investors Service said.

Local governments that pledged their full faith and credit to guarantee the general-obligation debt of enterprises and other municipalities was 7.9 percent of all Moody’s-rated New Jersey local-government issuance in 2008. In 2011, that figure increased to about 29 percent, Moody’s said in a report today.  (Young and Chang, Bloomberg)

https://www.bloomberg.com/news/2012-05-02/n-j-governments-may-be-exposed-to-risk-moody-s-says-correct-.html

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