States to Assess How Raters Analyze Municipal Bonds

Publication: Wall Street Journal

Author: Leslie Scism and Jeannette Neumann

10/21/2010 - Regulators who oversee some of the nation's biggest municipal-bond buyers will hold a hearing in November to assess whether bond ratings adequately reflect looming pension-fund and health-care costs for government workers.

Fitch Ratings, Moody's Investors Service and Standard & Poor's have been invited to a hearing Nov. 18 in New York to be hosted by regulators from the National Association of Insurance Commissioners, according to regulators from the two states leading the event.


States as a whole face a trillion-dollar gap between the pension, health-care and other retirement benefits they have promised to public employees and the money set aside to pay the benefits, according to a recent report by the Pew Center on the States.

Read the entire article States to Assess How Raters Analyze Municipal Bonds on the Wall Street Journal Web site.

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