Pennsylvania Treasurer Joe Torsella on Jan. 14 announced his call for S&P, Moody’s and Fitch to explicitly evaluate the role of, and reliance on, fees and fines for revenue for municipal bond ratings. If implemented, this added protection would reveal risk and increase transparency of the nation’s $4 trillion municipal bond market.

“One of the most pressing issues of our time is the need to address criminal and civil justice reform,” said Torsella. “We have an obligation to scrutinize widespread use of criminal, traffic and civil fees and penalties that can be too heavily relied on to bolster, and sometimes artificially inflate, state and local finances. Rating agencies can make a difference with a commitment to identify the truest risk to investors including the reliance on fines and fees when considering its credit rating decisions.”