...Rationale for Criteria Revision: The municipal market showed significant resilience through a severe recession, although there have been limited indications of an increased openness by issuers to not pay debt when conditions deteriorate sharply. In response, Fitch is revising its tax- supported rating criteria to better express the characteristics that make credits resilient through the economic cycle. Anticipated Rating Impact Limited: The criteria revision is focused on communicating opinions more clearly and providing the market with tools that facilitate a more forward-looking, predictable approach to ratings. Given that this is not a reconsideration of prior credit decisions, Fitch expects rating changes to affect less than 10% of the portfolio, with a roughly equal mix of upgrades and downgrades. Rating Changes More Predictable: In a sector characterized by very low default risk, insight into an issuer's vulnerability to adverse conditions and credit deterioration is of paramount...
