Ouch. Moody’s Investors Service has downgraded Philadelphia’s credit rating. The reason being that he city basically sucks at handling money and paying off debts.
“Little budgetary margin over its five-year plan which includes significant repayment of deferred pension contributions in 2013 and 2014,” has been cited as the reason for downgrading the city from an A1 to A2 rating, the Philadelphia Business Journal first reported.
So what does this mean? It’ll be harder for Philadelphia to borrow money, as the rating is a red flag to investors that the city’s not great with money.
Well, we didn’t need Blomberg to tell us the city’s bad with money.