WASHINGTON — Market participants are pushing back against attempts by Standard & Poor’s to rate municipal bond deals on the condition that the issuer agrees to accept both greater liability if the rating turns out to be faulty and an ongoing obligation to inform it of any material change to any information provided to the agency.

“I’ve heard from many of our members who are very concerned about these new contracts,” said Susan Gaffney, director of the Government Finance Officers Association’s federal liaison center here. “We’re hoping to have a conversation with [Standard & Poor’s] about the purpose of them to help provide our members with guidance.”

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.