Despite recent warnings from some financial experts that the ongoing financial troubles of state and local governments will lead to municipal bond defaults, state credits remain much more stable than corporate credits, Moody’s Investors Service said Wednesday.

No state has defaulted on its bond debt since the 1930s, while non-financial U.S. companies have an average annual default rate of about 2% or 2,000 defaults, according to Moody’s records. The relative overall credit strength of states is the reason all of them are rated between A1 and Aaa, while only 4% of U.S. non-financial companies are rated that high, Moody’s said in a special comment it released to the market.

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