Tri-City Voice Newspaper - What's Happening - Fremont, Hayward, Milpitas, Newark, Sunol and Union City, California


August 12, 2011 > US state and local government ratings can be higher than the sovereign

US state and local government ratings can be higher than the sovereign

Submitted By Standard & Poor's

Following the downgrade of the U.S. sovereign debt rating on August 5, 2011, Standard & Poor's Ratings Services explains in a new report that some U.S. state and local government obligors can maintain or achieve ratings higher than the sovereign. The report, "State And Local Government Ratings Are Not Directly Constrained By That Of The U.S. Sovereign," explains the factors that allow for this situation to occasionally occur.

The report notes that many U.S. state and local governments function with a high level of revenue, treasury, finance and debt management independence compared to their global counterparts. Factors considered by S&P when determining a state or local government's rating are detailed in the agency's relevant criteria documents: "USPF Criteria: State Ratings Methodology," published January 3, 2011, and "USPF Criteria: GO Debt", published October 12, 2006.

The report is available to subscribers of RatingsDirect on the Global Credit Portal at Others may purchase a copy of the report by calling (212) 438-7280 or sending an e-mail to Ratings information can also be found at

Home        Protective Services Classifieds   Community Resources   Archived Issues  
About Us   Advertising   Comments   Subscribe   TCV Store   Contact

Tri Cities Voice What's Happening - click to return to home page

Copyright © 2018 Tri-City Voice