We Expect a Multi-Year, But Potentially Temporary, Upswing of U.S. Municipal Credit
We raised credit outlooks on seven of our 11 municipal sectors, mostly as a result of recent meaningful U.S. fiscal policy relief and the path of the U.S. vaccination effort.
A multi-year, yet temporary, upswing of U.S. municipal credit is expected.
We are cautioning observers that this upswing could only be temporary for some entities, especially those entities that do not balance revenues and expenditures.
It may be necessary to reevaluate our outlook assignments if a significant fourth wave of new COVID-19 cases, hospitalizations, and deaths develops.