New Delhi, Jan. 8 -- The US public finance sector is expected to enter 2026 on a relatively stable footing, though underlying vulnerabilities are gradually building across several segments, according to a new outlook by S&P Global Ratings released on Thursday.
While most state and local government entities continue to benefit from solid reserves, disciplined fiscal management, and a still-resilient economy, the report cautions that growing structural pressures could test credit strength over the medium term.
S&P Global Ratings notes that public finance credit quality remains broadly supported by healthy revenue collections and prudent budgeting adopted by many governments in recent years.
States and large local governments, in particular...