WASHINGTON - Fitch Ratings yesterday proposed changes in its municipal ratings framework that would result in one- to two-notch upgrades on most general obligation bonds and debt backed by broad-based taxes, following a four-month review of the sector.

The announcement came one day after Fitch and competitors Moody's Investors Service and Standard & Poor's were sued by Connecticut Attorney General Richard Blumenthal for allegedly rating municipal credits lower than merited.

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