Standard & Poor’s began downgrading municipal bonds Monday, giving market participants a sense of the broad impact its downgrade of U.S. debt will likely have on the muni market.

The most likely candidates for downgrades are pre-refunded bonds, which are backed by Treasuries, housing bonds with federal guarantees, investment pools that invested in Treasuries, bonds backed by federal leases, and the bonds of state and local governments that depend on federal programs or facilities and employees, like Maryland and Virginia.

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