U.S. local governments were assigned a negative outlook by Moody’s Investors Service, the first time the New York-based credit rating company gave such an assessment to the overall group of debt issuers.
I say "sort of" because my post was aimed at state government bonds, but the same principal applies here. Local governments will have just as hard of a time as states in paying off debt issues. Muni bonds whose interest payments don't come at least partly from revenue-generating development projects can't realistically be considered safe havens anymore. I am not going to open my wallet for munis anytime soon, and probably not for several years.
