With a shortage of available credit and liquidity facilities shutting municipal issuers out of the short-term markets despite record-low rates, issuers with "moderate to low levels" of liquidity could see their credit affected, Moody's Investors Service said in a report released last week.

The supply of credit facilities is more limited and the terms and costs imposed by providers are higher than in the past. This could create added expense for issuers that fail to renew existing facilities, forcing them to restructure into more expensive forms of financing or to pay higher interest rates on bank bonds.

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