Select munis may have dodged a bullet when S&P said state and local governments can still...

|By:, SA News Editor

Select munis may have dodged a bullet when S&P said state and local governments can still claim a AAA-rating, even after Uncle Sam's debt was reduced to AA. Those munis not already downgraded can stay AAA if they: (1) pass a stress test; (2) survive a reduction in Fed benefits; (3) demonstrate financial flexibility.