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Once-Safest Muni Bonds Tarnished As Investors Await Downgrades

FYI: Late last month, Fitch Ratings downgraded $2.5 billion of Illinois’s sales-tax bonds by five steps, dropping them closer to debt backed only by the state’s promise to repay.

It may not be the last ratings cut for state and local-government bonds backed by dedicated revenue including tolls, fees or specific taxes -- a pledge that investors once assumed protected them from a government’s financial distress.
Regards,
Ted
https://www.fa-mag.com/news/once-safest-muni-bonds-tarnished-as-investors-await-downgrades-39336.html?print
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