WASHINGTON – U.S. Senator Chris Coons (D-Del.), a member of the Senate Budget Committee and the former County Executive of New Castle County, issued the following statement after Moody’s announced that New Castle County was one of 162 local governments in 31 states whose AAA bond rating will be reviewed for downgrade because of Washington’s inability to reach a compromise on how to raise the nation’s debt ceiling and avert a default crisis.

“We’ve been hearing for weeks about how Tea Party Republicans’ inability to accept responsibility for fulfilling the nation’s obligations would trickle down and impact municipalities’ own AAA bond ratings. This morning we woke up to find that nightmare is coming true.

“In six years as County Executive, I worked very hard with the County Council, with the county workforce, and with the public to make extremely difficult choices to achieve balanced budgets and maintain our AAA bond rating. In Delaware, we know what it means to share in the sacrifice, which is why the state has managed to be one of just a few to maintain its own AAA bond rating through the hard work of Governor Markell and the state legislature. Since coming to the Senate nine months ago, I’ve worked hard to convince my colleagues that similar sacrifices must be made in Washington as well, and that bipartisan compromise is the only way forward. The level of intransigence in the face of the obvious need to restore economic stability and market confidence has been frustrating.

“Only a fraction of the nation’s 3,000 counties were able to retain their AAA ratings during the recession, and municipalities across the country are now facing similarly difficult choices every day. I know how hard those decisions are and how significant the costs will be for everyone who borrows money. Whether it’s a local government trying to build a new police station or a small business trying to make payroll or a student trying to go to college, the impacts of default will reach every American.

“It’s disheartening to think that years of extremely difficult work at New Castle County maintaining our AAA bond rating could be tossed aside by weeks of reckless stubbornness by Tea Party Republicans. While we have record annual deficits and a dangerous national debt that need to be urgently addressed, defaulting on America’s mortgage is not the way to do it.

“The announcement from Moody’s today affects municipalities in 31 states, including those of the very Tea Party Republicans who are insisting on steering our nation’s economy off this cliff. I hope that this sobering news will instead help steer them to a responsible compromise.”

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