WASHINGTON – Investors' willingness to lend to municipalities in crisis like Puerto Rico, and count on a bankruptcy process to sort out the mess, is ratcheting up risks in the muni market, according to panelists at an analyst conference here on Friday.

Market participants need “to be far more careful about permitting people to borrow money that they don’t have a genuine basis for repaying” because politicians are going to find ways to borrow money when they need it, said RIchard Ravitch, the former non-voting representative of Puerto Rico’s government on the Puerto Rico oversight board, who is known for helping New York City sidestep its 1970s fiscal crisis.

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