Moody’s Investors Service has downgraded Orange County’s bond rating for the second time in six months.
Moody’s Investors Service Tuesday downgraded Orange County’s bond rating from Aa2 to Aa3 and assigned the county a negative financial outlook. This is the second time Moody’s has downgraded the county’s bond rating this year. In March, Moody’s lowered the county’s rating two notches. Republican Orange County Executive Steve Neuhaus, who took office in January, had expected the downgrade this week after a recent meeting with Moody’s officials.
“It’ll take 3-5 years to improve that rating. Really what we’re looking at right now is stabilizing,” says Neuhaus. “We’re in a flat spin, so to say, and we are crashing. I equate it to a crashing plane. We need to maintain altitude and then start growing from there.”
He says the most important remedy is a balanced budget.