U.S. public finance upgrades continued to outpace downgrades in the third quarter, but at a lower rate than previously, Standard & Poor's Ratings Services said in a report published Monday.
"This follows our expectations as the slower pace coincided with the wrap up of our local general obligation criteria implementation period," said Standard & Poor's credit analyst Gabriel Petek.
The report, "U.S. Public Finance Rating Improvement Cools In The Third Quarter After The Local Government Criteria Implementation Period," notes that although the number of defaults — three — remained the same as in the second quarter, the number is minuscule compared with the number of ratings in USPF. All three of these were related to Detroit's water and sewer revenue bonds.
Overall, by the end of the third quarter, 44.15% of USPF ratings were AA-minus higher (not including housing), indicating the relative strength of the sector.
