Moody's changes outlook for GovGuam & Guam Waterworks Authority to "negative"
Guam – The credit ratings agency Moody’s has changed the outlook of GovGuam’s Ba1 issuer rating from stable to negative.
The change in the outlook comes amid a fiscal crisis facing the island as lawmakers are scrambling to pass legislation to address a gaping $67 million hole brought on by the Trump Tax Cuts.
In its rating action, Moody’s says the outlook is “reflecting the possibility that its financial and liquidity positions could weaken further if timely, sufficient action isn’t taken to address the general fund revenue shortfall and restore long-term financial stability or if that revenue shortfall is greater than projected.”
Last week, Standard and Poors placed GovGuam on credit watch with negative implications for its general obligation and lease bond ratings for the same reason.
Read more: https://pacificnewscenter.com/breaking-news-moodys-changes-outlook-for-govguam-gwa-to-negative/