Sector View: Stable
The stable sector view reflects local governments’ proactive management; economic growth; and strong federal fiscal and policy response throughout the pandemic. Multiple rounds of federal stimulus for pandemic-induced revenue and expenditure fluctuations continue to provide a solid foundation for addressing potential pressure caused by new virus variants. When coupled with economic growth around the U.S., we expect local government credit quality to remain stable in 2022; however, borrowers will have to remain flexible to adjust to changing conditions.
5 Jan, 2022