Fast Eddie Fails To Save Harrisburg City

Despite a $4.3 million not-a-bailout package provided by the state, Sept. 12, the City of Harrisburg has announced it will skip $6.2 million in payments due tomorrow on 2003 Series bonds it guaranteed  on behalf of the Harrisburg Authority.

Nor will Pennsylvania’s capital make $1.2 million in payments due Nov. 1 to holders of the authority’s $17 million in 2002A Series bonds.

The rating for Assured Guaranty Municipal Corp, the city’s debt insurer was downgraded by Standard & Poor’s, Oct. 25, from AAA to AA+.

The state’s Community and Economic Development Department is scheduled to decide by Nov. 20 if Harrisburg qualifies for Act 47 help as a distressed city, a prerequisite for obtaining more state aid.

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