Some state and local governments that issue debt could face “significant stress” if market instability continues and see credit downgrades, Moody’s warned Wednesday. Although most municipal issuers are “well insulated from shock,” Moody’s said there are some governments that could be weakened in a volatile market environment. However, the agency does not anticipate widespread defaults, but opened the door to possible downgrades, although not by more than one level, Reuters reported. “We expect that the vast majority of these issuers could successfully manage through a period of diminished market access and tight liquidity without facing a severe deterioration in their...