Standard and Poor’s told issuers of municipal bonds this week that when seeking a rating it expects them to disclose all debt-like obligations including bank loans, which have become increasingly popular.

“Debt-like obligations, whether in the form of a bank loan, securities sold publicly, or in any other form, are, in our view, material and, thus, relevant to outstanding ratings,” analyst Mal Fallon wrote in a notice. “Therefore, additional debt in any form is something we want disclosed directly to us along with the related legal documentation.”

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