DOW JONES NEWSWIRES

The number of U.S. municipalities rated AAA has more than doubled since early 2008, an oddity amid tough economic times, according to Standard & Poor's Ratings Services.

A total of 83 communities joined the elite group through August, placing the figure at 169. Of the new entrants, 65 were upgraded to the top ranking while 21 other communities were initially rated AAA.

"The large increase reflects ongoing modifications to Standard & Poor's criteria and our view of the economic, financial and managerial strength of these municipalities," said S&P analyst Karl Jacob.

Governments, from the local to national level, haven't been immune from ratings downgrades the past several years. Like corporations, many are dealing with falling revenue and face greater difficulty in refinancing current borrowings.

-By John Kell, Dow Jones Newswires; 212-416-2480; john.kell@dowjones.com

(END) Dow Jones Newswires

11-03-09 1450ET