Local News

Charter school vote may hurt ratings, credit agency says

Mayor Daniel Rivera called Moody’s analysis “worrisome.’’ Wendy Maeda / Boston Globe

The credit-rating agency Moody’s Investors Service is warning Boston and three other Massachusetts cities that passage of a ballot measure to expand charter schools could weaken the municipalities’ financial standing and ultimately threaten their bond ratings.

In e-mails sent Monday, Nicholas Lehman, an assistant vice president at Moody’s, warned that passage of the referendum would be “credit negative” for the cities.

“Depending on the Nov. 8 vote, the general credit view is the following: A vote of ‘No’ is credit positive for urban cities. A vote of ‘Yes’ is credit negative for urban cities,” Lehman wrote.

Lehman told the cities he would provide a draft analysis of the referendum’s impact on Wednesday and solicit their comment, publishing a full report after the election.

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