Moody’s to Recalibrate Municipal Bonds to Global Rating Scale in Mid April - March 23, 2010

On March 16, Moody’s Investors Service announced that it will be recalibrating its municipal bonds to its global rating scale. Under the global scale, Moody’s anticipates that it will be easier for investors to compare municipal and corporate bonds. This is seen as a positive move for municipal bond issuers, who have complained that, on average, municipal bonds are rated lower than comparable corporate instruments, even though they have less of a risk of defaulting. The move could be beneficial for NAPH members that issue municipal bonds, which may see an uptick in their ratings. Moody’s states that the recalibration process will begin in mid-April.