Bangkok--17 Oct--Standard & Poor's
Most U.S. states and municipalities have, or have access to, adequate liquidity, but some may need to raise revenues or cut spending during the current market turmoil, Standard & Poor's Ratings Services said in a report, "Market Turmoil And Escalating U.S. Muni Debt Requirements," published today.
The report also noted that current market conditions are "pushing interest rates higher and costing states and municipalities that need access to short-term funds for cash flow or interim financing or are in variable rate obligations."
The effect on the large universe of unrated munis is hard to assess but is likely to be significantly greater than the effect on rated entities, the report said.
"We do not anticipate that current economic conditions will result in rating deterioration for many credits assuming the current market stresses ease within the next year," said Managing Director Colleen Woodell. "We believe that stability and sound management characterize many governments and that most will successfully manage through current events."
The report is available to subscribers of RatingsDirect, the real-time Web-based source for Standard & Poor's credit ratings, research, and risk analysis, at www.ratingsdirect.com. If you are not a RatingsDirect subscriber, you may purchase a copy of the report by calling (1) 212-438-9823 or sending an e-mail to [email protected]. Ratings information can also be found on Standard & Poor's public Web site at www.standardandpoors.com; select Ratings in the left navigation bar, then Credit Ratings Search. Alternatively, call one of the following Standard & Poor's numbers: Client Support Europe (44) 20-7176-7176; London Press Office (44) 20-7176-3605; Paris (33) 1-4420-6708; Frankfurt (49) 69-33-999-225; Stockholm (46) 8-440-5914; or Moscow (7) 495-783-4017.
Media Contact:
Edward Sweeney, New York, (1) 212-438-6634
[email protected]
Analyst Contacts:
Colleen Woodell, New York (1) 212-438-2118
Paul Coughlin, New York
William Montrone, New York (1) 212-438-2062
Chris Atkins, New York (1) 212-438-1106