WASHINGTON -- While entering into interest-rate swap transactions can be a useful debt and asset management tool, the risks involved can hurt an issuer's creditworthiness, Standard & Poor's Corp. told municipal issuers yesterday.

"We're not saying municipal issuers should not use derivatives. We are saying they should be very careful about how they structure them," said G. Kris Rao, a director in the rating agency's municipal finance area.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.