US state debt climbs; municipalities confront wildfire and hurricane seasons

Moody's Talks - Muniland

Emily Raimes of the US Public Finance team discusses the rise in state debt amid COVID-19 and the role borrowing will play as states’ infrastructure needs mount. Plus, Joe Manoleas and Val Gomez delve into the potential effects of wildfires in California and hurricanes along the Atlantic and Gulf coasts.

Inside this episode:

• Emily Raimes of the US Public Finance team discusses the rise in state debt amid COVID-19 and the role borrowing will play as states’ infrastructure needs mount. (begins at 2:00 mins)
• Joe Manoleas and Val Gomez delve into the potential effects of wildfires in California and hurricanes along the Atlantic and Gulf coasts. (begins at 7:52 mins)

Related content:

• State Government – US: Medians - State debt rose 2.5% in 2020, spurred by pandemic-linked borrowing - States' total net tax-supported debt increased to a record last year, but the growth rate was relatively modest despite pandemic-induced borrowings.
• Local Government – California: Municipalities will withstand credit risks posed by heightened wildfire threat - Despite a potentially devastating fire season, credit risks for local governments we rate are minimal owing to liquidity, tax bases, private insurance, and federal and state emergency aid.
• State and Local Government – US: Hurricane season starts amid rising costs for recovery; proposed changes in federal support pose risks - As the 2021 hurricane season begins, challenges loom for governments and residents needing to rebuild after storms hit.