NEW YORK (AP) - Suffolk County’s budget problems are causing some mild concern on Wall Street.
Moody’s Investors Service has reduced the county’s bond rating from Aa2 (double-A 2) to A1.
The rating is still considered above average. But Moody’s spokesman David Jacobson tells Newsday that the agency has also given Suffolk bonds a negative outlook. That means there could be another downgrade in the future.
Jacobson says the drop is related to the county’s tight cash flow and a deficit in its operating budget.
A lower bond rating could mean that it costs the county more to borrow money.
(TM and Copyright 2012 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2012 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)