WASHINGTON — With lawmakers in Washington still deadlocked over a debt-ceiling solution, public finance attorneys are evaluating what the effects of a U.S. downgrade would be on the municipal bond market.

The lawyers say the potential for a downgrade of the United States’ triple-A rating poses various risks to the municipal market. Specifically, bond attorneys said they are checking bond covenants associated with advance refunding escrow accounts. Debt service for advance refunded bonds is paid out of escrow accounts typically funded with U.S. Treasury securities.

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