CORONADO, Calif. -- As interest rates continue to rise, municipal issuers are trying to cut costs by providing less security for lease deals -- a development that results in increased risks to the investor, a Moody's Investors Service official told a lease finance convention.

The higher risks could come in the form of reduced purchases of rental interruption insurance and a reduced amount of capitalized interest, two integral parts of a California lease, Nikolai L. Sklaroff, assistant vice president in Moody's San Francisco office, said late Wednesday.

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