New York City should form a coalition with other major issuers to press rating agencies to grade municipal and corporate bonds on a single scale based on the likelihood of default, a city politician said on Friday.

"The power of a joint coalition and the amount of market power we could all represent I believe could push for reforms much quicker," City Council member and City Comptroller candidate Melinda Katz said. "We would jointly negotiate with the rating agencies and make sure that we are clearly representing the fact that a triple-B muni is just as good as an A-rated [corporate bond] ... Munis are taking a loss by the difference in the rates under the dual rating system."

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