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News In Brief

S&P gets dropped by municipalities

Kai Ryssdal Aug 17, 2011
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This final note today, in which S&P gets the bum’s rush.

At least three municipalities across the country have decided they no longer wish to do business with the ratings agency. The city of Los Angeles; Manatee County, Fla.; and San Mateo County, Calif., all had their credit ratings reduced by S&P last week from AAA to AA, much like the federal government.

So officials in all three places promptly canceled their contracts with S&P, contracts in which they paid S&P to rate the bonds they issue to raise capital.

Take that.

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