One year later: Municipal bond sectors weather the coronavirus crisis
The $1.9 trillion American Rescue Plan Act (ARP) includes a large allocation to municipal issuers. The credit impacts will vary by sector, also influenced by the severity and duration of the outbreak in a particular location. Credit ratings are generally a good barometer of a borrower’s ability to withstand unexpected financial stress. Most municipal issuers provide essential services and generally have a long history of functioning through varying economic cycles, credit cycles and temporary disruptions. We expect this to continue.