DALLAS -- Moody's Investors Service yesterday warned that a proposed constitutional amendment to limit taxes and spending in Colorado could put local governments in fiscal straitjackets and might prompt rating downgrades.

Ditmar Kopf, assistant vice president at Moody's, said that while payments to existing bondholders would not be affected by the Nov. 3 proposal, judicial review may be necessary to clarify how the amendment will affect government.

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