View Single Post
12-03-2012, 10:20 PM
Tommy Hawk
Registered User
Tommy Hawk's Avatar
Join Date: May 2006
Posts: 4,036
vCash: 500
Originally Posted by aqib View Post
The worse your rating the more expensive it is for you to borrow. So they will pay more at A2 as opposed to AA3. The other problem is that with the negative outlook (which means that they could downgrade it again at any point) the market may demand an even higher rate than A2 normally would.
Also, there is the uncertainty associated with the tax exempt status of munis as well.....

Tommy Hawk is offline