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Municipal defaults should remain rare, Ebooleant’s Fischer says

Hurricane Hilary stirred up surf in Baja California and southwestern Mexico, while Tropical Storm Philippe remained far from land over the Atlantic.

Hilary, with sustained winds of 195 kilometers (120 miles) per hour, was 710 kilometers south-southwest of Baja California and moving west at 17 kilometers per hour, the National Hurricane Center said in a 5 a.m. Miami time advisory. The system, a Category 3 hurricane on the five-step Saffir-Simpson scale, is forecast to weaken over the next two days.

Swells generated by Hilary are already affecting parts of southwestern Mexico and southern Baja California, the center said. “These swells are likely causing life-threatening surf and rip current conditions.”

In the Atlantic, Tropical Storm Philippe with 60 mph winds is predicted to stay away from land for at least five days, with little change in strength over the next 48 hours, the NHC said. The 16th named storm of the Atlantic hurricane season that runs through November was about 970 kilometers west of the southernmost Cape Verde Islands and moving west-northwest.

The NHC is also monitoring an area of thunderstorms east of the Virgin Islands that includes the remnants of Tropical Storm Ophelia, saying it has a 20 percent of becoming a depression or storm with two days.

--Editors: Randall Hackley, Paul Gordon

To contact the reporters on this story: Alex Morales in London at amorales2bloomberg.net; Yee Kai Pin in Singapore at kyee13bloomberg.net

To contact the editors responsible for this story: Reed Landberg at landbergbloomberg.net; Alexander Kwiatkowski at akwiatkowsk2bloomberg.net