Good news for the US Municipal Bond market - Moody's finally announces its decision to rate municipal bonds on the same scale it uses for corporate debt. It would be a significant change for the tradition-bound municipal bond market and could help to lower borrowing costs for some local governments during tougher economic times. It could also lead to less demand for bond insurance at a time when several big guarantors are faltering. (More on this here)
When are the rating agencies in India going to follow suit? If in the US, a uniform rating scale will help sustain a faltering Munis market, in India the same could break open its still-born Municipal debt market.