Rating quality in U.S. public finance appears to be stabilizing, as indicated by the decreasing number of rating changes during the last quarter, according to a Standard & Poor’s report published Tuesday.
“The decreased number of rating changes appear to indicate that issuers are taking the necessary steps to stabilize their financial situations as well as that we have completed a number of criteria-related reviews,”said credit analyst Gabriel Petek. “However, in our view, the number of downgrades could increase if employment and tax revenue trends remain weak.”
State and local government sectors continued to account for most of the rating changes in public finance, with 234 upgrades and 20 downgrades.
