Municipal Bond News & Insight

• Moody's to Upgrade Munis

Moody's Investors Service will significantly upgrade municipal bond ratings across all sectors and rating categories. The upgrades are a result of Moodys decision to use the same rating system for both muni and corporate bonds, and reflect the underlying quality of municipals and their exceptional record of performance.

• Main Street Gas Bondholders Take Action

In reaction to the bankruptcy of Lehman Brothers Holdings, Inc. (LBHI), institutional holders of the Series 2008A bonds issued by Main Street Gas are forming a bondholders committee to better represent investors interests.

• Main Street Gas Bonds Downgraded in Wake of Lehman Bankruptcy

Standard & Poor's has lowered the rating on Main Street Gas pre-pay bonds, series 2008A to 'CCC-' from 'A'. The downgrade results from Lehman Brothers Holdings, Inc. (LBHI), announcement that it has filed for bankruptcy. The rating remains on Negative Credit Watch.

• Financial Industry Challenges Could Affect Gas Bonds

S&P and Fitch have placed Main Streets 2008A bonds on Negative Watch.

• The Election and Municipal Bonds

We're not sure who will win the presidential election, but we're confident of one thing: Taxes will rise, regardless of who's in the White House next year, and municipal bond investors will wax longingly over todays returns.