S&P Global: U.S. Local Government Credit Quality Could Wobble As Federal Policy Shifts

S&P Global Ratings said today that high unpredictability about changes to or the direction of federal policy could lead to credit instability for some local governments.

"Such governments have experience absorbing short-term revenue disruptions or expenditure requirements, but significant changes in this era in which uncertainty is the new reality could have lasting effects that require management teams to proactively address their operating budgets," said S&P Global Ratings credit analyst Jane Ridley in the report "U.S. Local Government Credit Quality Could Wobble As Federal Policy Shifts," published today on RatingsDirect.

"Ambiguity regarding the magnitude and duration of federal policy changes adds uncertainty and can hamper management teams' planning efforts and lead to disruption," Ms. Ridley added.

The report is available to RatingsDirect subscribers at www.capitaliq.com. If you are not a RatingsDirect subscriber, you may purchase a copy of the report by sending an e-mail to [email protected]. Ratings information can also be found on S&P Global Ratings' public website by using the Ratings search box at www.spglobal.com/ratings.

This report does not constitute a rating action.