Although state and local officials are beginning to express worry that they will be unable to afford rising pension and health care costs, many credit rating agencies do not seem to be factoring this risk. Professor David Reiss was interviewed by Bob Moon about how the National Association of Insurance Commissioners and the rating agencies are butting heads on the issue. The major rating firms are "disappointed with Enron and WorldCom," he said. "They are disappointed with mortgage-backed securities, and I think that people are kind of hyper-sensitive."
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