More municipalities are likely to become distressed, according to a new Fitch Ratings report on the outlook for U.S. local governments.

“In our view, the vast majority of local governments in the U.S. will manage the slow macroeconomic recovery through a combination of prudent budget management, including tax increases in some cases,” the Fitch report states. “However, we believe a few more local governments than the ones already making headlines could have negative outcomes.”

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