WASHINGTON — Local government defaults and bankruptcies could be higher this year than the historical norm, but are expected to remain rare, Moody’s ­Investors Service said in a report released yesterday.

The fiscal pressures on local governments, fueled by the national recession, mean Moody’s will keep its negative outlook on the state and local government sectors in 2010, the rating agency said yesterday in two other separately published sector outlook reports.

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.