WASHINGTON — The 7.2% reduction in federal subsidy payments to Build America Bond issuers for fiscal year 2014 is a credit negative for issuers that rely on the subsidy to make debt service payments on the bonds, said Moody’s Investors Service.

The credit negative declaration does not imply a rating or outlook change but is indicative of the impact of a development as one of many factors affecting an issuer.

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.