NEW YORK May 16 The latest U.S. Treasury
suspension of state and local government series securities,
known as slugs, is not likely to affect municipal credit
quality, Standard & Poor's rating services said on Thursday.
The Treasury on Wednesday suspended slugs as the first of a
series of potential emergency cash measures to allow the
government to keep paying the nation's bills once a temporary
suspension of the debt ceiling lapses this weekend.
Slugs are low-interest Treasury securities offered to state
and local governments to invest proceeds from municipal bond
sales. They have been suspended eight times over the last 20
years to avoid hitting the debt ceiling, most recently last