Moody’s Investor Service has threatened to review the triple-A credit rating of Wellesley and 162 other local governments that could be impacted by the debt crisis facing the federal government, whose own triple-A bond rating is under review. Wellesley’s in good company, with Brookline, Dover and Newton also on the watch list.
“The ratings of these local governments, particularly those with a high economic dependence on federal activity, would be vulnerable to a downgrade of the U.S. government” said Moody’s Senior Vice President Matt Jones, in a statement.
The Massachusetts congressional delegation is none too happy with Moody’s decision, firing off a letter to the credit rating agency that said: “It is highly irresponsible of you to continue to subject these communities to the wholly unwarranted uncertainty that you have created…. Such an unfounded downgrade will subject some communities to potentially higher costs as they seek to meet the critical needs of their citizens for police, fire, education, etc.”