Even as federal judges in Stockton and Detroit both ruled that cities could cut pensions in a municipal restructuring, both places left bankruptcy in recent weeks with promised pensions largely intact. Bondholders' recoveries, however, varied widely. Credit rating agencies are generally wary of such restructurings. "The disparate treatment of pension obligations and investor-owned obligations means that pensions are likely to enjoy better treatment than general government debt in Michigan and California Chapter 9 cases, and potentially in bankruptcies filed in other states," wrote Moody's this week in a credit analysis. "[This has] negative credit implications for local government bond investors in Michigan and California, and the U.S. as a whole." On the plus side, Moody's added that the clear option to cut pensions in bankruptcy now may give cities leverage in union negotiations. This could be helpful to distressed cities.