CHICAGO - How local governments begin to manage - and eventually fund - the accrued liability of their other post-employment benefits will prove increasingly important to overall creditworthiness over the next several years, said rating analysts and other market participants attending The Bond Buyer's OPEB conference here.

"To the extent that cost pressures weaken financial position or flexibility, credit quality may suffer," said Standard & Poor's analyst Peter Block. "Essentially it's going to crowd out other services and crowd out capital spending."

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