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Criteria I Governments I U.S. Public Finance: U.S. Local Governments General Obligation Ratings:Methodology <br /> And Assumptions <br /> from a likelihood of ongoing payment obligations not yet occurring that represent more than 10%of total <br /> governmental funds revenues. Once the payment obligations become reality,they are included in the debt measure. <br /> Examples of contingent liabilities include potential legal judgments, currently self-supporting government enterprise <br /> debt that is likely to require support in the near future,guaranteed debt likely to need support in the near future,and <br /> additional costs resulting from pending changes in law. <br /> 84. As discussed in paragraph 50,a very high debt,pension, and OPEB burden can lead to a management score of'4', <br /> which caps the final rating at the lower of'A'and one notch lower than that suggested by table 1. In cases where these <br /> liabilities are not determined to be excessive,the one-notch flexibility described in paragraph 24 may be used to <br /> account for the impact that elevated levels of these liabilities can have on credit quality. <br /> VII. APPENDIX I: Selected Historical Statistics <br /> 85. Selected historical statistics on local government defaults taken or derived from George Hempel's"The Postwar <br /> Quality of State and Local Debt" are shown in tables 15 and 16. <br /> Table 15 <br /> Number Of Recorded Defaults From 1839-1965 By Type Of Governmental Unit <br /> Counties and Incorporated Unincorporated School Other <br /> Year States parishes municipals municipals districts districts <br /> 1839-1849 9 4 <br /> 1850-1859 2 7 4 4 <br /> 1860-1869 1 15 13 9 <br /> 1870-1879 9 57 50 46 4 2 <br /> 1880-1889 30 30 31 5 1 <br /> 1890-1899 94 93 50 9 12 <br /> 1900-1909 43 51 33 11 11 <br /> 1910-1919 7 17 5 7 <br /> 1920-1929 1 15 39 10 14 107 <br /> 1930-1939 417 1,434 88 1,241 1,590 <br /> 1940-1949 6 31 7 5 30 <br /> 1950-1959 12 31 4 23 42 <br /> 1960-1965 17 70 20 41 44 <br /> Total defaults 22 720 1,867 307 1,353 1,846 <br /> Total state and local 50 3,043 17,997 17,144 34,678 18,323 <br /> governmental units in 1963 <br /> Table 16 <br /> Government Of •tal Governmental Units By Type Of • <br /> Counties and Incorporated Unincorporated municipals School districts Other districts <br /> Year parishes(%) municipals(%) (%) (%) (%) <br /> 1839-1849 0 0 0 0 0 <br /> 1850-1859 0.2 0 0 0 0 <br /> 1860-1869 0.5 0.1 0.1 0 0 <br /> WWW.STANDARDANDPOORS.COM/RATINGSDIRECT SEPTEMBER 12,2013 31 <br /> 1190266 1300881696 <br />