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Municipal Bonds at Greatest Risk of Default

Posted 11 March 2010 || Photo: Adam Gault | OJO Images | Getty Images

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America's Riskiest Municipal Bonds

Municipal bonds are issued by a city, local or state government and have long been identified as among the safest investment options in the country. However, for some local governments, the financial crisis has caused revenue to drop and bond payments less likely to occur than originally thought.

CNBC.com has obtained from Fitch Ratings the lowest rated American municipal bonds that the agency covers, which are the bonds that carry the highest probability of defaulting on debt payments.

None of the debt covered by Fitch carry ratings that show "imminent" or "probable" default, but the bonds listed here carry at least a moderate default risk compared to other issuers in the country. The following bonds are tax-supported credits rated BBB- and below.

So, which US municipal bonds are at the greatest risk for default? Click ahead to find out.

By Paul Toscano

Posted 11 March 2010 || Photo: Adam Gault | OJO Images | Getty Images